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American Securities nears Fund VI target

The former family office is targeting $3bn for mid-market investments between $100m and $1bn.

American Securities appears to be on the verge of closing its $3 billion sixth fund, according to US Securities and Exchange Commission documents. American Securities, which is headquartered in New York, launched the fund last year.

The firm had raised $2.87 billion on a $3 billion target as of 17 October, according SEC filings. It is unclear whether the firm will continue fundraising beyond its $3 billion target. Credit Suisse worked as an advisor for the fundraise.

The firm typically invests $100 million to $1 billion in mid-market companies without a sector or regional focus, according to its website. It is unclear whether Fund VI has the same long-term strategy as its predecessor, which raised $2.3 billion in 2008 with a 25-year fund life.

The fund has already received commitments from several prominent pension systems, including the State of Wisconsin Investment Board, the Montana Board of Investments, the Louisiana Teachers’ Retirement System and the San Francisco Employees’ Retirement System.

This summer, affiliate American Securities Opportunities Fund closed its second vehicle on $753 million, surpassing its original $500 million target. The distressed fund focuses on public and private companies in distress “or trading at distressed levels due to deterioration in operating performance or anticipated liquidity problems”, the firm said in a statement.

American Securities bills itself as one of the oldest private equity firms in existence. The firm started out in 1947 as a family office investment shop founded by William Rosenwald, an heir to the Sears, Roebuck fortune. The firm did “bootstrap” investments that eventually came to be known as leveraged buyouts, according to its website.