AEA raises $5.7bn

The American manager closes two oversubscribed funds.

AEA Investors held a final close of its seventh flagship fund, AEA Investors Fund VII, and its fourth small business fund, AEA Investors SBF IV, the firm announced on Thursday.

AEA Investors Fund VII closed on $4.8 billion, the hard cap. The fund makes control middle market debt and equity investments in the value-added industrial, consumer and services sectors in North America and Europe. Two investments have been made from the fund so far.

The prior fund of this strategy, AEA Investors Fund VI, was also oversubscribed. Fund VI targeted $2.5 billion and closed on $3.17 billion in November of 2015.

Fund VII includes commitments from 130 institutions globally, and counts pensions, sovereign wealth funds, endowments, foundations, insurance companies, financial institutions, asset managers, fund of funds and family offices among its limited partners. AEA committed about $275 million to the fund.

PEI has fund-level data on two Fund VII investors: Fubon Life Insurance committed $50 million and ICG Enterprise Trust committed £15.3 million ($19.9 million).

The second fund announced as closed, AEA Investors SBF IV, raised $877 million. The target size was $600 million. The fund received $762 million from outside investors and $115 million from AEA.

The fund makes control investments in North American- and European-based lower middle market companies in the value-added industrial, consumer and services sectors. The firm’s prior fund of this strategy, AEA Investors SBF III, closed in June 2016 with $443 million of committed capital on a $350 million target.

No investors in the fund were disclosed by the firm, though PEI data shows a $20 million commitment from the Montgomery County Public Schools Pension Fund.

Both funds engaged Kirkland & Ellis as counsel; neither fund used a placement agent.