American Industrial Partners gears up for Fund VI

One of the highly anticipated names in the private equity fundraising market this year is American Industrial Partners, which is expected to come back to market with its sixth fund.

The firm has been talking to potential limited partners about targeting between $1.5 billion and $2 billion for Fund VI, three sources said.

It’s not clear when Fund VI will hit the market. One source said the fund may not officially launch until the second half of the year.

“It’s going to go fast,” said one of the sources, an LP with knowledge of the fundraising.

Buyouts was unable to learn if AIP will use a placement agent for Fund VI. The firm used MVision Private Equity Advisors as a placement agent on prior funds.

Ben DeRosa, a partner in business development at AIP, did not respond to an email request for comment.

The firm raised $700 million for its fifth fund, which closed in 2011. That fund was raised in just two months and beat its $500 million target. The GP committed $17.5 million to Fund V. That pool was generating a 1.13x total value multiple as of Jan. 31, according to the New Jersey Division of Investment.

AIP has been active in private equity investing since 1989, according to the firm’s website. Its principal owners are Partners John Becker, Dino Cusumano and Kim Marvin, according to the firm’s Form ADV.

AIP makes control investments in North American-based industrial companies with sales ranging from $100 million to $500 million and “are underperforming their profit potential,” the regulatory document said.

As of Dec. 31, 2013, AIP managed about $1.45 billion on a discretionary basis and $50 million in assets on a non-discretionary basis, the Form ADV said.

In February, AIP agreed to buy the fasteners unit of Anixter International Inc for $380 million in cash.

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