American Securities is within reach of its $750 million target for its third opportunities fund, according to documents filed with the US Securities and Exchange Commission Wednesday.
The firm raised at least $725.1 million for the vehicle as of Wednesday, according to the filing. The fund will invest between $20 million and $100 million per deal in companies with revenues in the $100 million and $1.5 billion range.
The Los Angeles City Employees’ Retirement System committed $30 million to the vehicle earlier this year. A Hamilton Lane report included in the retirement system’s 27 August meeting materials indicates that the firm may raise as much as $1 billion for the distressed debt fund. A firm spokesperson had not responded to a request for comment at press time.
“The GP exploits attractive industry themes that are facing potential catalysts, which may lead to distressed debt opportunities,” according to LACERS memo on the fund. “Historically, the GP has maintained diversified exposure across healthcare, business services, consumer services, defense services, power and energy, and transportation and industrials.”
The report lists managing directors Anthony Grillo and Lawrence First as the fund’s senior partners. Fund III offered LACERS a 1.5 percent management fee on aggregate commitments during the investment period and a 1.5 percent fee on invested capital post-investment period. The vehicle will include a commitment of up to $20 million from the GP, according to the report.
The firm’s 2010 vintage opportunities fund had generated a 14.18 percent net internal rate of return as of 31 March, according to a Public Employee Retirement System of Idaho report. PERSI categorises the vehicle as a distressed debt for control fund.
Charles Klein and Michael Fisch founded the modern incarnation of American Securities in 1994. The firm tracks its origins to a family office launched in 1947 by Sears Roebuck & Company heir William Rosenwald.