American Industrial Partners is set to close its fifth buyout fund, possibly as early as this week, two sources told Buyouts.
The New York-based shop will close the fund at its hard cap of $700 million, $200 million ahead of target, the sources said.
The fundraise is impressive considering, according to the sources, that it only took American Industrial about three months to raise the fund. The size of American Industrial Partners V LP would also mark a hefty increase from that of the firm’s fourth buyout fund, which closed with around $405 million in commitments in August 2008.
MVision, a placement agency with offices in London and New York, helped the firm raise the fund.
In October, the New Jersey State Investment Council approved a $100 million commitment to the fund, according to Money Management Letter. Previous backers of American Industrial Partners funds have included AXA Private Equity, Grove Street Advisors, and the Orange County Employees Retirement System, according to the Dow Jones Directory of Alternative Investment Programs.
American Industrial Partners typically invests $10 million to $70 million of equity in companies in the manufacturing and industrial service sectors generating EBITDA of $10 million to $70 million.
The firm has made at least two platform acquisitions this year, according to Capital IQ. Back in August, it completed its acquisition of Northwest Hardwoods Inc., a Tacoma, Wash.-based manufacturer of kiln-dried hardwood lumber furniture for the furniture, cabinet and millwork industries. The seller was Weyerhaeuser Co., the price approximately $110 million. And earlier this month, American Industrial agreed to buy Kalyn Siebert LP, a Gatesville, Texas-based manufacturer of specialty truck trailers.
The firm’s portfolio also includes Allied Specialty Vehicles Inc., a manufacturer of recreational and commercial vehicles, as well as vehicles for fire and emergency uses; Mark Andy Inc., a maker of equipment used in the label and packaging markets; and Micro-Poise Measurement Systems LLC, a provider of measurement and inspection systems for the tire industry.
An executive with American Industrial Partners was not immediately available for comment.