Aterian Investment Partners has closed Aterian Opportunities II LP (AO Fund II), a new single asset continuation vehicle with capital commitments of $460 million.
AO Fund II’s capital will be used to purchase Vander-Bend Manufacturing from Aterian’s second fund which closed in December 2013 with $257 million of capital; and to provide an incremental $90 million of equity to support Vander-Bend’s future activities.
AO Fund II is managed by Aterian and is anchored by funds managed by J.P. Morgan Global Alternatives, Hollyport Capital and Blackstone Strategic Partners as well as other new and returning limited partners from other Aterian funds. In addition, Aterian professionals and Vander-Bend management rolled a significant portion of their equity from the sale into the new transaction, and Aterian’s third fund – which closed in July 2018 with $350 million of capital – also invested.
Vander-Bend is a prototyper, developer, manufacturer, and assembler of large-format metal products used primarily in the medical technology sector for robotic assisted surgery and radiation oncology. The company, led by CEO Greg Biggs, was founded in 1979 and is headquartered in San Jose, California, with five production facilities with 550,000 sq. ft. of combined manufacturing space.
Vander-Bend was acquired by Aterian in May 2018 and has completed several add-on acquisitions including Omni Components, a New Hampshire-based manufacturer and service provider of consumable medical products used in spinal, cardiovascular, and tendon-related surgeries (April 2023); Swiss Precision Machining, an Illinois-based manufacturer of complex and tight tolerance consumable medical instrument components used in robotic surgery (December 2020); TMK Manufacturing, a California-based provider of prototyping and machining services to medical technology companies (May 2020); and J.L. Haley Enterprises, a California-based fabricator of metal components used primarily in medical devices (January 2019).
“We are excited to announce the closing of this new fund,” said Aterian in a released statement. “This continuation vehicle allows us to continue our partnership with Vander-Bend and provides a significant and attractive liquidity event to our Fund II investors. We are immensely grateful for the support received from both new and existing investors during this process. As a full team, we are incredibly motivated to continue executing alongside management and support Vander-Bend as it writes its next chapter.”
Aterian invests from $10 million to $100 million in middle market businesses with $50 million to $750 million in revenue and $10 million to $50 million in EBITDA. The firm’s latest fund, Aterian Investment Partners IV LP, closed in October 2021 with $830 million of committed capital. Aterian has offices in New York City and Coral Gables, Florida.
With the closing of AO Fund II, Aterian has now raised more than $2 billion of commitments across six different investment funds.
Jefferies was the financial advisor to Aterian and Kirkland & Ellis provided legal services.
© 2023 Private Equity Professional | November 1, 2023
