American Industrial Partners has sent a powerful signal to rivals in the US mid-market, raising $700 million for its fifth fund in just two months having launched fundraising in late October.
The firm comfortably exceeded its $500 million target for the fund on its way to its $700 million hard cap. In a statement, the firm said 15 percent of committed capital came from new investors based outside the US.
Endowments provided 30 percent of the capital, insurance companies 26 percent, funds of funds and gatekeepers 24 percent, and pensions and sovereign wealth funds 20 percent, the firm said.
New Jersey Division of Investment made a sizeable commitment to the fund, according to PEI Media research group Private Equity Connect.
MVision Private Equity Advisers worked as placement agent on the fundraising, while Simpson Thacher & Bartlett provided legal advice.
The fund will be used to acquire control positions in North American-headquartered companies in the industrial sector which generate sales in the $100 million to $500 million range.
AIP’s previous fund raised $406 million in 2007.