AEA Investors Fund V Surpasses Goal By $500M: UPDATED

Firm: AEA Investors LLC
AEA Investors Fund V LP
Target: $1.5B
Amount Raised: $2B
Placement Agent: UBS
Legal Counsel: Kirkland & Ellis

AEA Investors had disclosed a fund target of $1.5 billion for Fund V. The effort began about a year ago, and AEA Investors held Fund V open late last year to accommodate more demand. The firm’s 2006 predecessor fund was $1.3 billion.

Despite a challenging fundraising environment, AEA Investors “had a good track record and very consistent returns” to offer investors, a source said. UBS served as placement agent on the fund.

Founded in 1968 by interests in the Rockefeller, Harriman and Mellon families along with S.G. Warburg & Co., AEA Investors bills itself as a “leading private equity partner to middle market companies,” according to the firm’s Web site.

The firm lists three investments in its AEA Fund V, including Swanson Industries Inc., Sparrows Group and NES Global Talent.

Separately, AEA has disclosed a fundraising effort for AEA Mezzanine Fund III, according to a Form D filing on March 27.The pooled private equity investment fund has raised $346 million thus far, according to the filing.

Besides fundraising, AEA Investors has been active on the deal front. In February, the firm sold a majority of its position in SRS Distribution Inc., a roofing specialist, to Berkshire Partners LLC.

AEA Investors portfolio company Phillips Feed & Pet Supply paid an undisclosed price to buy Brentwood, N.Y.-based Royal Pet Supplies from Quarry Capital Management in a deal announced earlier this month. AEA Investors made its initial investment in Phillips in 2010.

The AEA Investors 2006 Fund LP was launched in 2006 and drew a $30 million investment from the New York City Employees Retirement System, according to the Buyouts database.

According to the site, the firm’s AEA Mezzanine Fund raised $600 million in 2005 for debt investments in middle-market companies. AEA Investors held a first closing on AEA Mezzanine Fund II in 2008. The two funds have about $900 million of capital under management.