American Securities has held a first and final closing of American Securities Partners VII, LP (ASP VII) with total capital commitments of $5 billion. The fundraise beat the target of $4 billion and closed at the hard cap. American Securities began fundraising in September 2014.
“American Securities greatly appreciates the interest expressed in ASP VII by many long-standing relationships, as well as new investors, from the US and global investing community,” said Michael Fisch, President and CEO of American Securities. “This new partnership provides us with further equity capital to support management teams in growing their businesses.”
As it has with earlier funds, American Securities will invest from $200 million to $500 million of equity capital per transaction in businesses with $200 million to $2 billion of revenues and/or $50 million to $200 million of EBITDA. Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products.
“ASP VII maintains the 25-year fund life potential of prior American Securities funds, thus permitting American Securities to remain invested in a company for many years and allowing management teams the flexibility to always act in the best long-term interest of their businesses,” said David Horing, a Managing Director of American Securities, who along with Mr. Fisch is a Managing Member of ASP VII’s general partner.
New investments for American Securities will continue the firm’s tradition of investing with conservative financial structures.
Joe Chlapaty, Chairman and CEO of Advanced Drainage Systems which was acquired by American Securities in September 2010 said, “We are a company with a long history of employee and management ownership, and American Securities has been a strong partner for us because of their long-term perspective coupled with their willingness to utilize lower leverage, which has provided greater flexibility to our business.”
In addition to its investment professionals, American Securities supports management teams with the firm’s Resources Group, a team of functional experts available upon request by portfolio company CEOs. George Thanopoulos, CEO of Metaldyne Performance Group, a portfolio company of American, explained, “American Securities has been a truly value-added partner. We have been able to continuously access the Resources Group, particularly in the areas of information technology and human capital. American Securities brought Metaldyne talent and unique capabilities that we’ve not seen in other private equity firms.”
American Securities has offices in New York and Shanghai (www.american-securities.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 1-13-15