American Securities affiliate Ascribe sets $1.25 bln target for Fund IV

  • American Securities affiliate raising new distressed debt fund
  • Louisiana Teachers’ commits up to $75 mln
  • Previous fund netting a 25.7 pct IRR

Ascribe Capital set a $1.25 billion target for investments in distressed middle market companies, according to documents obtained by Buyouts.

Ascribe, an affiliate of American Securities, will use its fourth flagship fund to acquire stakes in the debt of 30 to 40 distressed companies, according to a Hamilton Lane report prepared for the Teachers’ Retirement System of Louisiana.

Louisiana Teachers’ committed up to $75 million to the fund at its meeting last week.

As with previous fund, Ascribe’s investment team will identify service-oriented sectors likely to go through periods of distress and deploy the fund’s capital accordingly, according to the Hamilton Lane report.

“Ascribe encounters limited competition given the size and complexity of targeted investment opportunities and the need for prudent, long-term capital structuring for companies undergoing complex financial situations,” according to the Hamilton Lane report.

The firm’s previous fund, which raised a little more than $1 billion in 2014, was netting a 25.7 percent internal rate of return as of June 30, according to the Hamilton Lane report. Funds I and II were netting IRRs of 31.7 percent and 9.5 percent, respectively, as of the same date.

Ascribe was founded in 2006 by Anthony Grillo, who retired in 2015. The firm is now led by CIO and Managing Director Lawrence FirstUmesh Mahajan and Josh Parrish are managing directors at the firm.

Michael Fisch and David Horing, both of American Securities, hold seats on the fund’s investment committee.

Ascribe spokeswoman Amy Harsch declined to comment on fundraising.

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