Aterian, with Sun Capital-Insight Equity pedigree, raises Fund III

Aterian Investment Partners, led by executives from Sun Capital and Insight Equity, recently closed its third fund on slightly more than $350 million, sources told Buyouts.

UBS was placement agent on the fundraising for Aterian Investment Partners III, a June Form D filing said. Sources pegged the target at $350 million.

Fund III took about seven weeks to raise and included mostly re-ups from existing investors, with a few select new LPs added to the mix, sources said.

Aterian hasn’t yet started investing Fund III, sources said.

Michael Fieldstone, former principal with Sun Capital, launched Aterian in 2009. The firm is led by Fieldstone, ex-Sun Capital Principal Christopher Thomas and ex-Insight Equity Principal Brandon Bethea.

The management company is principally owned by Bethea, Fieldstone and Thomas, according to Aterian’s Form ADV.

Aterian focuses on middle-market investments in businesses generating $25 million to $500 million in annual revenue with strong franchises in need of up to $50 million, the Form ADV said.

The firm looks primarily for control investments, turnarounds, companies or industries in transition, companies in need of operational support, restructurings, carveouts, underperformers and other complex situations.

The firm has grown over the years and now employs 14.

Last month, the firm acquired Albany Industries Inc, a maker of home furnishings. The acquisition was an add-on to Aterian’s platform investment Standard Furniture Manufacturing Co.

Action Item: Check out Aterian’s Form ADV here: https://bit.ly/2JwO7fS