American Securities has closed a hard cap of $1 billion for its third distressed private equity fund. Its LPs include asset managers, insurance companies, pension funds and sovereign wealth funds.
NEW YORK, June 27, 2014 /PRNewswire/ — American Securities LLC today announced the closing of its third distressed private equity investment partnership, American Securities Opportunities Fund III, L.P., with total capital commitments from external investors of $1 billion. The partnership was oversubscribed and hit its hard capitalization, ending with nearly 40 percent more capital than its $753.4 million predecessor, American Securities Opportunities Fund II L.P. Institutional investors included leading asset managers, insurance companies, pension funds and sovereign wealth funds.
In announcing the closing of ASOF III, American Securities Opportunities Fund’s Chief Investment Officer, Lawrence A. First, said, “We are pleased to have raised a new pool of capital that will allow us to continue to apply our value-based investment approach in a disciplined manner to generate attractive risk-adjusted returns from debt instruments of middle market companies.”
American Securities Opportunities Fund invests in securities of companies that may be stressed or undergoing operational, financial, or other challenges, and in securities trading at a discount to intrinsic value. The firm has the ability to invest across the entire capital structure, make loans to – and equity or equity-like investments in – stressed companies, fund recapitalizations, provide debtor-in-possession loans and exit financings, and invest in securities in order to fund both in-court and out-of-court restructuring plans. American Securities Opportunities Fund can participate in both control and non-control investments.
In 2006, American Securities LLC created a dedicated team to invest in primarily debt instruments of stressed businesses under the American Securities Opportunities Fund brand because it believed that there would be opportunities to generate attractive risk-adjusted returns through investments in these types of situations. American Securities Opportunities Fund is an affiliate of American Securities LLC, and is led by a separate investment team with over 95 years of collective investing, restructuring, and bankruptcy experience.
Michael G. Fisch, President and Chief Executive Officer of American Securities LLC, commented, “Larry First, Tony Grillo, and the other members of the American Securities Opportunities Fund team have been strong generators of attractive returns historically and we are enthusiastic about their ability to continue this success on behalf of investors in American Securities Opportunities Fund III, L.P. We are delighted that the team will be able to continue investing on behalf of many long-standing investors and select new relationships.”
About American Securities Opportunities Fund
American Securities Opportunities Fund makes attractive risk-adjusted investments in securities of companies that are distressed or undergoing operational, financial, or other stress and securities trading at a discount to intrinsic value. American Securities Opportunities Fund’s strategy includes making control, as well as non-control, investments. American Securities Opportunities Fund has more than $2 billion under management. The firm is affiliated and works in collaboration with American Securities LLC. More information about American Securities Opportunities Fund can be found at www.asopportunitiesfund.com.
About American Securities LLC
Based in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $500 million to $2 billion. American Securities and its affiliates have more than $10 billion under management. The firm traces its roots to a family office founded in 1947 to invest and manage a share of the fortune created from the growth of Sears, Roebuck & Co in the early 1900s. More information about American Securities can be found at www.american-securities.com.