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With offices in New York, London, and Hong Kong and with 22 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 $2.4 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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In 2005, AEA formed the AEA Mezzanine Fund to pursue mezzanine debt investment
opportunities in middle market companies. The Mezzanine Fund has $600 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
Fund will evaluate potential 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
with “unsponsored” public and private
companies. The Mezzanine Fund will invest in
a broad range of transactions, including acquisitions,
recapitalizations, refinancings and growth opportunities.
In addition, the Mezzanine Fund will make senior debt and equity co-investments in certain
transactions. The target size ranges for the
Mezzanine Fund’s investments are $10 million
to $40 million for mezzanine debt, $5 million
to $10 million for senior debt and $1 million
to $5 million for equity co-investments. This
team is based in Stamford, Connecticut and New York.
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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 will evaluate potential 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 with “unsponsored” public and private companies. The Middle Market Debt Fund will invest in a broad range of transactions, including acquisitions, recapitalizations, refinancings and growth opportunities. In addition, the Middle Market Debt Fund will make equity co-investments in certain transactions. The target size ranges for the Middle Market Debt Fund’s investments are $5 million to $20 million for senior secured debt and $250,000 to $2 million for equity co-investments. This team is based in Stamford, Connecticut and New York.
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