Steel Partners Holdings: Carry Considerations, But Seems Cheap

2025-08-10 05:47:02 ET

The Steel Partners Holdings L.P. Common Units ( OTC:SPLP ) is a holding company with several diversified steel products businesses, a smaller-scale regional-style banking business, and finally a smaller oil and gas services business. The company holds significant amounts of its own shares in treasury, with shares outstanding around 23 million fully diluted after deducting those shares held in treasury, and they recently voluntarily delisted from the NYSE seeking to lower filing costs, which means that future disclosure and frequency of disclosure should become thinner. The units look pretty undervalued. We have the per-unit earnings annualizing at around 3x. Compared to the multiples in regional banking and the multiples in various metal and other diversified industrial businesses, we think it's cheap. Though it's important to mention that LPs are on the hook for management fees, not too different from the 2&20 structure that an alternative asset manager would take from LPs, that caps some of the upside. But there doesn't seem to be anything egregious about it as far as we can tell....

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