Alpha Aggregates is a pioneering investment firm focused on the U.S. construction aggregates sector. Our mission is to generate superior returns for our investors through data-driven strategies and expert market analysis. We specialize in identifying and capitalizing on high-value aggregate reserves in key growth markets, leveraging our extensive industry experience and innovative analytical tools.
Our Latest News & Articles
- Inflation Eroding Infrastructure Funding: A Growing Challenge for U.S. Development
- Unparalleled Insight: How Mineralocity Aggregates Gives Alpha Aggregates a Competitive Edge
- Understanding the Carbon Footprint of Concrete, Cement, and Aggregates: Investment Insights & Alpha Aggregates
- The Critical Role of Construction Aggregates in Modern Infrastructure
- The Overlooked Bedrock of Infrastructure: Why Investment in Construction Aggregates is Crucial
Our estimated investable universe in target markets stands at $30-$40 billion, presenting a significant opportunity for value creation. By partnering with family offices and institutional investors, Alpha Aggregates seeks to build a diversified portfolio that enhances returns through strategic value-add and opportunistic investments.
Key Investment Attributes
Scalability: Access to a large investable universe with minimal competition.
Consistent Cash Flow: Aggregates provide high, stable cash flows due to their essential role in construction.
Non-Commodity Pricing: Local market dynamics determine pricing, offering resilience against global market fluctuations.
Fragmented Market: Dominated by regional family-owned businesses, presenting acquisition opportunities.
Data-Driven Decisions: Mineralocity Aggregates enables precise market analysis, identifying high-growth, high-value investment opportunities.
Partner with Us
Alpha Aggregates offers a unique opportunity for investors to participate in the robust and growing U.S. construction aggregates market. Our experienced team, proprietary tools, and strategic approach ensure that we can capitalize on market opportunities and deliver strong returns. We invite family offices, institutional investors, and infrastructure-focused investors to join us in this venture, benefiting from our deep industry knowledge and innovative strategies.
Leadership Team
Guided by experience, driven by innovation, committed to sustainable growth.
Stuart Burgess
Managing Partner and Chief Executive Officer
Peter Madden
Managing Partner and Chief Investment Officer
Bill Schnieders
Partner of Investment Origination and Partnerships
Bryan Pratt
Partner of Investment Operations and Due Diligence
FAQs
What are the major industry risks and mitigants?
Location and transportation are critical to the value proposition of aggregates due to their low value-to-weight ratio; proximity to end users is key, as transportation costs can quickly erode value. While recycling is gaining importance, many applications still require virgin aggregates to meet project specifications. Aggregate production primarily depends on the ownership of reserves, with energy inputs like diesel, electricity, and sometimes explosives being necessary for operations. Labor requirements are generally lower than in other types of mining.
The aggregates industry is subject to market cycles, with long-term growth driven by population changes and economic cycles influencing demand. Regional construction activity largely determines aggregate demand, as seen during the Global Financial Crisis when a decline was followed by a quick rebound in consumption and pricing. Ownership in the industry is fragmented, with few national players and many small operators. Alpha Aggregates mitigates these risks by using our proprietary software, Mineralocity Aggregates, to identify the best operators and reserves in optimal markets, leveraging data on demand, supply, population statistics, and logistical information.
What are the regulatory factors that need to be considered?
Federal, state, and local regulations must be considered when dealing with construction aggregates, as these rules vary significantly by location. At the federal level, the Mine Safety and Health Administration (MSHA) enforces safety and health standards. State and local regulations can include environmental impact assessments, zoning laws, and operational permits, which differ widely across jurisdictions. Alpha Aggregates mitigates these regulatory challenges through its partnership with leading industry consultants and operating partners, who have successfully evaluated hundreds of greenfield sites. Their extensive relationships and expertise in navigating regulatory landscapes help minimize risks and ensure compliance.
What are the decarbonization efforts impact on construction aggregates?
Decarbonization efforts significantly impact the construction aggregates industry, which is essential for building infrastructure and a green economy. While cement manufacturing is a leading generator of CO2 emissions, Alpha Aggregates does not engage in this segment of the industry. Instead, we focus on aggregates, a critical component in various construction projects, including those aimed at reducing carbon footprints. As the world moves towards greener practices, the demand for construction aggregates remains strong, supporting the development of sustainable infrastructure.
Who are the major customers of aggregate and how deep is the market?
The major customers of construction aggregates include ready-mix concrete plants, asphalt plants, and virtually every construction contractor in the United States. The market is deep and robust, with an estimated 2.8 billion tons of construction aggregates consumed annually in the U.S. This demand is driven by a wide range of construction activities, from residential and commercial buildings to infrastructure projects (Concrete Financial Insights) (Rock Products).
Contact Us Today
- Have an aggregate project that needs funding?
- Interested in investing?
- Would you like to learn more?
