AEI Closes Fund II at Hard Cap

AE Industrial Partners (AEI) has held a final closing of its second private equity fund, AE Industrial Partners Fund II LP, with $1.36 billion in commitments. The new fund exceeded its $1 billion target and was oversubscribed, reaching its hard cap.

Fund II commitments came from a mix of institutional investors, including endowments, charitable foundations, public and corporate pensions, financial institutions, funds of funds, family offices, and sovereign wealth funds.

AEI’s first private equity fund closed in April 2016 with $680 million in equity commitments, ahead of its $600 million target. Fund I, which is currently over 80 percent invested or reserved, has closed 21 acquisitions since April 2015, including seven platform investments and 14 add-on acquisitions.

“Fund II closed with nearly double the commitments of our first fund, which is strong recognition of AEI’s successful strategy and performance for its investors,” said David Rowe, Managing Partner of AEI. “We thank our investment partners for their support as we continue to identify attractive investment opportunities in aerospace and defense and related industries both in the United States and globally.”

Eaton Partners served as the placement agent for the raising of Fund II and was also the placement agent for Fund I. Eaton Partners (www.eatonpartnersllc.com) was acquired by Stifel Financial (NYSE: SF) in January 2016. Over the past 12 months, Eaton Partners has closed 14 funds and is actively raising capital for an additional 16 funds.

“Dating back to our initial interest in raising our first fund, Eaton Partners has done a great job in helping us navigate the fundraising process and introducing us to the highest-quality global institutional investors and consultants,” added Mr. Rowe. “We appreciate their bold guidance and expertise in what is a very competitive fundraising environment.”

AEI invests in the aerospace & defense, power generation and specialty industrial sectors with a specific focus on technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul) and industrial service-based businesses.  Typical company targets will have from $50 million to $500 million of revenue. The firm is headquartered in Boca Raton (www.aeroequity.com).

“With our deep operating expertise and valuable relationships in these sectors, we are well positioned to uncover unique opportunities and create value for our investors,” said Michael Greene, Managing Partner of AEI. “With Fund II successfully closed, we look forward to the next chapter for AEI and its investors.”

Kirkland & Ellis (www.kirkland.com) provided legal services to AEI for this fundraise.

© 2018 Private Equity Professional | July 11, 2018

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