Bonaccord and Wafra Take Minority Piece of AEI

Bonaccord Capital Partners and Wafra, Inc. have closed a minority investment in private equity firm AE Industrial Partners (AEI).

Boca Raton-based AEI invests in the aerospace and 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 held a final hard-cap closing of its second private equity fund, AE Industrial Partners Fund II LP, with $1.36 billion in commitments in July 2018 (www.aeroequity.com).

“We are proud to partner with two highly-regarded and experienced alternative asset managers with global reach that share our vision as a specialist private equity firm with high growth potential,” said David Rowe, managing partner at AEI. “Our industry focus and proprietary origination networks present us with interesting acquisition opportunities, as evidenced by our completion of 34 acquisitions since 2015. The partnership with Wafra and Bonaccord will assist in funding our growth as a firm.”

“Our goal is to provide founder and family-owned enterprises in our target markets the increasingly creative and flexible capital solutions they require,” said Michael Greene, managing partner at AEI. “We are happy to have our new partners on board as we identify these opportunities and work with owners to help solve their operational and capital needs.”

New York-based Bonaccord Capital Partners specializes in acquiring long-term interests in private equity firms and is a division of Aberdeen Standard Investments (ASI), an Edinburgh-based investment manager with more than $735 billion in assets under management. ASI’s alternative investments total $34 billion in allocations to third-party asset managers across private equity, real assets, real estate and hedge fund strategies (www.aberdeenstandard.com).

In early February, ASI began raising Bonaccord Capital Partners I LP with a target of $1 billion. To date, the new fund has closed on $228 million in commitments. In June, the new fund acquired a minority stake in Atlanta-based MSouth Equity Partners.

“We are thrilled to deepen ASI’s long-standing relationship with AEI through Bonaccord’s permanent equity investment,” said Ajay Chitkara, head of Bonaccord. “AEI has demonstrated itself as a clear industry leader in its sectors of focus. We believe that AEI’s substantial commitment to building a team with exceptional investment and operating capabilities position it for continued investment success.”

“We believe AEI’s deep expertise in its target sectors enables AEI to successfully execute on its differentiated strategy. We are excited to expand our relationship with AEI and look forward to AEI’s continued growth and success,” said Russell Valdez, chief investment officer of Wafra.

New York-based Wafra has more than $24 billion of assets under management and invests across a range of asset classes including minority investments in private equity firms (www.wafra.com). In March, Wafra made a non-voting minority investment in Siris Capital Group.

Boston-based Colchester Partners, an investment bank that specializes in transactions with investment management firms, was the financial advisor to AEI and Kirkland & Ellis provided legal services.

© 2019 Private Equity Professional | August 7, 2019

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