Avista fully deploys Fund II

With the Tom Dean-led firm’s acquisition of glass door maker Anthony International, Avista’s second fund, which closed on $1.8bn last year, is fully invested.

Avista Capital Partners completed three acquisitions in five days and has fully invested its second fund, which it closed last year on $1.8 billion, the firm’s co-chief executive officer Tom Dean told Private Equity International.

The New York firm, which targets investments in the healthcare, media, industrial and energy sectors, declined to comment on any plans to return to the fundraising market.

While the fund held its final close last year, it started investing after its first close in the summer of 2008, sources close to the firm said.

The recent deal spree was capped by Thursday’s acquisition of Anthony International, the leading producer of glass doors for commercial refrigeration, from Aurora Capital Group. Terms of the deal were not disclosed by the firm. Los Angeles-based Aurora acquired the California company in 2004.

Tom Dean

“This company is in a really compelling position to benefit from the energy savings initiative that is taking place across its customer base,” Dean said.

Dean added that there is a growing interest in environmentally friendly refrigeration technologies. Although Anthony falls within Avista’s industrial portfolio, the firm views green industries as an opportunity to combine its interests in the energy and industrial sectors.

On Monday, Avista purchased a controlling stake in Sidewinder Drilling for $125 million. The Houston-based drilling contractor uses drilling rigs for exploration and production companies. Along with large private equity firms Kohlberg Kravis Roberts and TPG Capital, Avista has become increasingly invested in shale gas assets. The firm in May committed up to $176 million to Appalachian Midstream Partners (AMP), operator of a pipeline in the Marcellus Shale.

Also this week, Avista purchased Dallas-based data center operator DataBank Holdings from the Freeman Group. Terms of the deal were not disclosed. The center operates and stores internet servers.

“As more and more bandwidth is needed, there’s more of a demand for the centers that store the servers,” Dean said.

Avista was founded in 2005 as a spinout from Credit Suisse First Boston. The firm’s $2 billion first fund closed in 2007. The fund included commitments from the New York City Employees Retirement System, the New York City Police Pension Fund, the Teachers’ Retirement System of the City of New York and the North Carolina State Treasury.