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With offices in New York, London, Munich, Hong Kong and Shanghai,
and with 20 senior investment professionals leading a staff of approximately
30 professionals overall, AEA leverages its experience, global network, and
resources across continents, industries, and capital markets. AEA's middle
market private equity team currently manages over approximately $3.6 billion of invested
and committed capital. The firm operates as a single global private equity
organization focusing on buying businesses headquartered in the U.S. and
Europe (and selectively in Asia). Unlike country-specific or regional funds,
AEA applies its institutional knowledge and experience, as well as the
resources of its investment professionals and Participants, on a worldwide
basis in support of its investment activities. AEA believes that during a
period of increasing globalization, its worldwide network of
relationships-including Participants, operating partners, portfolio companies,
and the AEA investment team-enables the firm to be an invaluable resource in
helping our investors and our companies profit from those changes.
AEA today focuses on well-defined sectors: - Value-added industrial (including manufacturing, service, and distribution)
- Specialty chemicals
- Consumer products
- Services (primarily to these sectors)
Focusing teams on specific sectors magnifies
the AEA structure and network. AEA’s deep industry knowledge and
rigorous due diligence enable the firm to identify attractive assets with the
potential to generate superior investment returns.
In the industrial
products and specialty chemicals sectors, AEA
primarily looks for companies that have high
value-added margins, strong and defensible market
positions in attractive niches, and opportunities
to grow both organically and through accretive
strategic acquisitions. Such companies often
have proprietary technology, meaningful switching
costs for customers, strong distribution relationships,
and sustainable product innovation capabilities.
While they are already well-positioned, attractive
businesses, such companies are likely to offer
opportunities for AEA in partnership with management
to accelerate revenue growth, focus operations,
and improve financial management.
In
consumer products, the AEA investment team focuses
primarily on branded food, beverage, personal
care, and household product companies. In addition,
AEA is pursuing investment opportunities among
manufacturers of private label products in certain
categories, selected semidurable goods manufacturers,
and service providers in the consumer goods
sector. That investment focus is derived from
AEA’s belief that the changing retail
environment, which is causing both traditional
retailers and consumer packaged-goods companies
to adopt new strategies, will result in attractive
investment opportunities. In order to be able
to identify and capitalize on those opportunities,
an understanding of key trends in demographics
and consumer behavior, retail channels and retailers,
and, more broadly, sales, marketing, and operational/manufacturing
strategies is necessary. With that requisite
knowledge, in addition to an extensive network
of executives, advisers, and Participants, AEA
is well positioned for success.
In the services sector, AEA seeks to make investments in distribution, outsourcing and retail services companies that deliver essential, value-added solutions to their clients. Services companies that AEA focuses on are typically noncyclical businesses that have recurring customer relationships, generate highly predictable earnings, and deliver high returns on invested capital. |
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AEA Mezzanine Funds
In 2005, AEA raised the $600 million AEA
Mezzanine Fund to pursue mezzanine debt investments in middle market
companies. In 2008, AEA had a first closing on AEA Mezzanine Fund II.
Combined, the Mezzanine Funds have approximately $900 million of capital
under management. AEA views mezzanine debt investing as highly complementary
to its private equity investing, and allows the firm the capability to provide
both debt and equity capital to middle market companies and management teams.
The Mezzanine Funds evaluate potential investments in a broad range of
industries and have developed a diverse portfolio by investing in partnership
with AEA’s private equity professionals as well as other private equity
sponsors and in “unsponsored” public and private companies. The Mezzanine
Funds invest in a broad range of transactions, including acquisitions,
recapitalizations, refinancings and growth opportunities. In addition,
the Mezzanine Funds also make equity co-investments. The target size ranges
for the Mezzanine Fund’s investments are $10 million to $40 million for
mezzanine debt and $1 million to $5 million for equity co-investments.
Since its formation in 2005, the AEA Mezzanine Fund has invested in over 25
different companies. This team is based in Stamford, Connecticut and New York.
AEA Middle Market Debt Fund
In 2007, AEA formed the AEA Middle Market Debt
Fund to pursue senior secured debt investment opportunities in middle market
companies. The Middle Market Debt Fund has over $400 million of capital under
management. AEA views senior debt investing as highly complementary to its
private equity and mezzanine debt investing, and allows the firm the
capability to provide first and second lien senior secured debt, mezzanine
debt and equity capital to middle market companies and management teams.
The Middle Market Debt Fund makes investments in a broad range of industries
and has developed a diverse portfolio of investments by investing in
partnership with AEA’s private equity professionals as well as other private
equity sponsors and in “unsponsored” public and private companies. The Middle
Market Debt Fund has invested in a broad range of transactions, including
acquisitions, recapitalizations, refinancings and growth opportunities. In
addition, the Middle Market Debt Fund makes equity co-investments in certain
transactions. The target size ranges for the Middle Market Debt Fund’s
investments are $5 million to $15 million for senior secured debt and
$250,000 to $1 million for equity co-investments. Since its formation in
2007, the Middle Market Debt Fund has invested in over 25 different companies.
This team is based in Stamford, Connecticut and New York.
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