Apollo, LGT lead AEA’s single-asset process for Singer Industrial

AEA Investors is closing a single-asset continuation fund for its portfolio company Singer Industrial in a deal led by AEA small-business funds, Apollo’s secondaries group and LGT Capital, sources told Buyouts.

The deal is one of the few that has found its way to final close in the challenging markets. While large, headline grabbing secondaries deals are delayed mostly because of challenges in syndicating out fundraising, middle-market deals like AEA’s are more frequently getting done.

AEA worked with Jefferies as secondaries adviser. The firm is expected to raise $384 million in the process, sources said.

Interestingly, along with Apollo and LGT, AEA’s own small-business funds served as lead investor in the deal. Other investors were also involved, sources said. Such cross-fund investments into continuation fund deals aren’t common, but have been growing and are especially attractive to buyers as a sign of the manager’s dedication to the investments, sources have told Buyouts in past interviews.

AEA first invested in Singer Industrial in 2011 through its second small-business fund and subsequently made almost 30 add-ons. The company distributes industrial hose, rubber, belt, fluid power and automation products and services.

AEA is the second large deal closed recently with Apollo S3 as a lead investor. The firm was also in the mix on healthcare specialist BPOC’s multi-asset continuation fund process, which raised $425 million, the firm announced earlier this month.

Apollo led the deal along with Blackstone’s Strategic Partners and Rothschild’s Five Arrows, Secondaries Investor reported. Other investors included JPMorgan, Newbury Partners, Committed Advisors and Kline Hill Partners. The process moved five healthcare services companies out of two 2013 vintage pools, Beecken Petty O’Keefe & Co Fund IV and Beecken Petty O’Keefe & Co Fund IV-A.