From technology adoption to employee ownership, Jason Karl, a Managing Director in Advent’s Industrials team based in New York, shares his perspective on opportunities shaping the sector, how Advent partners with management teams, and why people remain at the heart of every investment.
What themes are you most excited about in the industrials space?
For the last 50 years we’ve underinvested in the electric grid and demand is only going to go up. Consequently, one of the trends we are focused on right now is electrification – whether its data centers, electric vehicles, or renewable energy.
As a country, we are going to need a lot more power and the investment required is going to create opportunities for the materials, products, and service companies that are directed towards the electric grid infrastructure. We’ve mapped out companies across each step of the value chain and are looking for those that bring something different – whether that’s product innovation, intellectual property, or a different level of service or brand recognition. We are actively out meeting these companies, listening to their growth ambitions, and identifying opportunities where we can support and accelerate their journey.
Second, reindustrialization in North America. Over the next decade, I expect we’ll be making more things in the US, and that’s exciting for investors, employees, and communities alike.
Industrial businesses are often very people intensive. How do you manage that dynamic?
Many of the industrial businesses that we work with have thousands of employees, so it’s critical that everyone understands how their day-to-day role connects to the broader mission. We work closely with management teams to build engagement and productivity. One of the lessons I learnt very early in my career, from an investment in ABC Supply around 15 years ago, was the power of measuring and acting on employee engagement. Today, that’s a standard practice across our portfolio.
We’ve also rolled out broad-based ownership programs in some of our North American industrial companies, leveraging the resources of Ownership Works. Aligning incentives across the entire employee base is an investment in people, helping us attract, retain, and motivate the best talent. We see it as a win-win – good for employees and good for business.
Industrials haven’t always been associated with technology. How do you see that changing?
Customers increasingly expect the same digital ease they get from consumer tech – intuitive interfaces, easy ordering, real-time tracking. Many smaller industrial companies don’t have those capabilities. That’s where Advent brings real value. Through our Portfolio Support Group and incredible advisors, we help companies build digital muscle that differentiates them in the market and deepens customer relationships.
How do you navigate macro headwinds like tariffs or supply chain disruption?
These challenges are real, but they affect the entire market. What matters is starting with companies that have durable competitive advantages. If you begin from a position of strength, turbulence becomes an opportunity. For example, one of our portfolio companies is helping customers find lower-cost solutions as product availability shifts. Staying close to customers and doubling down on strengths is how we help businesses adapt and thrive.
Looking back, what advice has shaped the way you invest?
Two lessons stand out. First, become a true expert. Go as deep in understanding the business as the management team itself so you can be a real partner. Second, be a good listener. Listen to management, to the market, to the company’s signals. Partnership is built on listening and clarity of priorities, and those qualities are central to how Advent operates.
