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AEA Investors Closes Seventh Flagship Fund at $4.8 Billion Hard Cap
Oversubscribed Fund Will Invest Between $150 and $450 Million in Middle Market Companies
Across the Value-Added Industrial, Consumer and Services Sectors
Brian Hoesterey Promoted to CEO; John Garcia to Serve as Executive Chairman
New York – December 19, 2019 – AEA Investors LP (“AEA” or the “Firm”), a pioneering alternative investment manager specializing in middle market private equity and debt investments, announced it has successfully closed AEA Investors Fund VII (“AEA Fund VII” or the “Fund”) with total equity commitments of $4.8 billion. With strong support from both new and existing investors, including AEA’s well established group of executive investors, the oversubscribed fund includes commitments from a diverse group of more than 130 institutions globally, including public and private pensions, sovereign wealth funds, endowments and foundations, insurance companies, financial institutions, asset managers, fund of funds, and family offices.
Established in 1968, AEA’s Middle Market Private Equity team currently manages more than $10 billion of invested and committed capital. AEA Fund VII will continue its strategy of making control investments in leading middle market companies within the value-added industrial, consumer and services sectors focused on North American and European headquartered businesses. AEA will continue to work closely with its portfolio company management teams to drive long-term value, transformational change and accelerate growth.
AEA Fund VII represents a 50% increase in third-party capital from AEA Fund VI, which closed in 2015. Demonstrating alignment with its investors, the General Partner committed an additional approximately $275 million of capital, representing the largest single investment in the fund.
With the commencement of AEA Fund VII, the Firm has also announced the transition of Brian Hoesterey from President to CEO. AEA’s former Chairman and CEO, John Garcia, will remain as Executive Chairman and continue to serve on the investment committees of all AEA funds with Mr. Hoesterey. Mr. Hoesterey and Mr. Garcia both joined AEA in 1999.
“We are thrilled to close AEA Fund VII at its hard cap, marking yet another important milestone in the Firm’s history,” said Mr. Garcia. “The enthusiasm we saw from both our new and existing limited partners around the globe is a testament to the hard work of our team and further solidifies our position as a preferred source of private equity capital for leading management and family-led companies. I look forward to working together with Brian to build upon the Firm’s overall strategy, growth and, importantly, its culture which has been core to AEA delivering attractive returns to our investors for many years.”
“While our firm has grown, we have maintained our investment philosophy over many years and economic cycles to deliver meaningful returns to our investors,” added Mr. Hoesterey. “We continue to build upon our established investment strategy by leveraging the deep industry/subsector knowledge of our investment and operating partners. Further, our extensive network and global resources are important in identifying and adding value to middle market businesses that are poised for their next stage of growth. We view ourselves as providing these companies with transformational capital; helping them improve operationally, strategically and financially. As evidenced by our deployment so far, there are substantial opportunities to put capital to work addressing the significant demands across the value-added industrial, consumer and services sectors.”
The Fund has completed two investments to date including Jack’s Family Restaurants, a leading regional quick service restaurant serving Southern-inspired food across 162 company-owned units in Alabama, Tennessee, Georgia, and Mississippi; and BMS Enterprises, the second largest non-franchised provider of property restoration and reconstruction services to commercial and residential end markets in the United States. Both investments represent opportunities for the Firm to partner with best-in-class management teams within AEA’s core sectors.
Through its prior funds, AEA has invested in well-recognized consumer brands, retailers, and service providers including Burt’s Bees, At Home, 1-800 Contacts, and Traeger Pellet Grills. Similarly, AEA has also invested in a number of leading industrial manufacturing and services businesses within areas such as distribution, specialty chemicals and materials, building products, industrial technology and software, and packaging companies including GMS, Evoqua Water Technologies, SRS, Pro Mach, Houghton, CPG, TricorBraun, Numotion, Visual Comfort Group, and Springs Window Fashions.
Kirkland & Ellis served as fund counsel. The firm engaged no intermediary to assist in fundraising.
About AEA Investors LP
AEA Investors LP was founded in 1968 by the Rockefeller, Mellon and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA has an extraordinary global network built over many years which includes leading industrial families, business executives and leaders; many of whom invest with AEA as active individual investors (“Participants”) and/or join its portfolio company boards or act in other advisory roles. Today, AEA’s approximately 80 investment professionals operate globally with offices in New York, Connecticut, London, Munich and Shanghai. The firm manages funds that have approximately $15 billion of invested and committed capital including the leveraged buyouts of middle market companies and small business companies and mezzanine and senior debt investments. AEA Private Equity invests across three sectors: value added industrials, consumer, and services. AEA Fund VII is the latest in a lineage of private equity funds dating back to 1968.
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