PE HUB Wire Highlights, 8.23.18

AEA gears up for next flagship fund, Illinois Teachers’ sets out strategic PE plan

Happy Thursday! Welcome to your evening Wire! Obviously we had some tech issues today … what would a week be without some tech issues? Should be back to normal tomorrow — Chris

Secretive: AEA Investors is preparing to come back to market with its seventh fund this fall. Fund VII could raise as much as $5 billion, which would make it AEA’s largest fund yet.

AEA is as quiet a private equity firm as there is, though over the years it’s become more high profile simply because of the amount of money it’s been able to raise and the deals it’s done. Investors who have been with AEA are happy with the firm’s performance and word is Fund VII will get raised without much problem. Read my full story here.

It’s interesting because AEA started as a sort of investment club for high-net-worth individuals and families, Justin Abelow, managing director in Houlihan Lokey’s financial sponsors group, wrote in PE HUB earlier this year. Now it’s more of a regular-style private equity firm.

Last year, AEA sold a stake in its management company to one of its limited partners, RDV Corp, the family office of the DeVos family. That will be something LPs look into as they analyze the new fund.

Cross-fund: Interesting column from my colleague David Toll on how one firm continued growing a platform investment after its fund ran out of money.


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