American Industrial Partners has exited two investments from its fourth fund this week, just weeks after hitting its $700 million hard-cap for its fifth fund.
The mid-market firm’s back-to-back exits of Brooks Instrument and Ichor Systems were prefaced by its acquisition of Heil Trailer International in a carve-out from the Dover Corporation earlier this week. Terms of the transactions were not disclosed.
AIP could not be reached for comment.
AIP’s $405 million fourth fund has performed very well, according to New Jersey Division of Investments documents, generating a net internal rate of return of 28.7 percent and a return multiple of 2.36x. The firm’s second, third and fourth funds have all generated top quartile returns.
New Jersey committed up to $100 million to the fifth fund at its December meeting, citing the firm’s ability to double its portfolio companies’ EBITDA on average, according to pension documents.
In December, AIP held a first and final close for its fifth fund on $700 million after only two months on the market, beating its $500 million target. 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.
MVision Private Equity Advisers worked as placement agent on the fundraising and Simpson Thacher & Bartlett provided legal advice.
AIP has been investing in private equity since 1989 and manages around $1.1 billion in equity capital. The firm typically invests in manufacturing or industrial service companies with revenues of $100 million to $500 million.