American Industrial raises $405m

The middle market firm has closed it fourth fund, more than half of which was contributed by new investors, after approximately two years of fundraising. The fund has deployed $50m of capital to date.

New York private equity firm American Industrial Partners has closed it fourth fund targeting middle-market industrial companies on $405 million (€275 million), slightly north of its $400 million target.

The fund is nearly twice the size of its predecessor, which closed on $238 million in 2000.

Around two-thirds of the capital was raised from new investors including alternative asset managers FLAG Capital Management, Grove Street Advisors and Parish Capital. Also invested are Goldman Sachs, non-profit investment office Investure and John Hancock Life Insurance Company.

The remainder was contributed by returning investors including financial institution HSBC and alternative asset manager Partners Group.

AIP IV also includes a $14 million general partner commitment.

The fund was largely raised from North American investors but 12 percent of committed capital came from Europe, while 4 percent was from Asia.

The firm began informal fundraising from existing investors in 2006, holding a first close in January last year. In June 2007, AIP brought on London-based MVision as placement agent to approach new investors.

AIP IV has invested approximately $50 million in three acquisitions since April 2007.

Earlier this month, the firm acquired fire rescue vehicle supplier E-One and in January the firm acquired the Brooks Instrument division of Emerson Electric, a flow measurement and control devices producer. In April 2007, the fund made its first investment acquiring the quality measurement division of Illinois Tool Works which provides precision measurement equipment to the tire and automotive industries. Financial details for all three investments were not disclosed.