EverWatch, New Mexico ERB invest in AE Industrial’s sophomore fund

  • EverWatch invests in PE firms and direct deals
  • Investment size: $4 mln to $15 mln
  • Contact for a meeting:  Matt Womble, managing director at Everwatch, at matt@everwatch.com
  • What’s new: EverWatch pledged to AE Industrial

EverWatch, a family office, and New Mexico Educational Retirement Board backed AE Industrial Partners’ second fund, targeting $1 billion.

New Mexico ERB committed $60 million. It has discretion to make an additional commitment of $10 million in secondary partnerships if they become available, pension documents show.

How much EverWatch pledged to the fund is unclear, though it typically commits up to $10 million to managers, a source said.

AE Industrial Partners is the Boca Raton, Florida, middle-market private equity firm investing in aerospace-related companies. It was launched in 1998 by David and Brian Rowe. Previously David Rowe worked with Gulfstream Financial Services Corp, GE Aerospace and GE Capital.

Fund II will focus on buyout and growth-equity investments in segments of aerospace, power generation and specialty industrial markets, pension documents show. The hard cap on Fund II is $1.25 billion.

AE Industrial changed its key-man provision clause for the second fund. Managing Partners David Rowe and Michael Greene are no longer named individually as key men. Both men would have to depart to trigger such a provision in Fund II, pension documents show.

Its debut fund closed at $680 million in 2016. At the time AE Industrial also raised an additional $160 million for co-investment vehicles including its legacy investment in Global Jet Capital that AE Industrial owns with Carlyle Group and GSO Capital Partners.

AE Industrial’s current portfolio has seven platforms with 11 add-on acquisitions, pension documents show.

Its recent investments include Applied Composites, Belcan, Kellstrom Aerospace and Moeller Aerospace.

Fund I returned an IRR of more than 30 percent for New Mexico ERB, pension documents show. Additionally, New Mexico ERB has made three co-investments in Fund I portfolio companies.

“We like the fact that AE Industrial and its partners hail from the industry and have deep domain knowledge,” said Steve Neel, deputy chief investment officer at New Mexico ERB.

Eaton Partners LLC is placement agent.

EverWatch and AE Industrial Partners declined comment.

Action Item: Read more on AE Industrial Partners here https://www.aeroequity.com/