Fancy a long-term investment? A really long-term investment? Longer than the age of some FT Alphavillers for instance?
Private equity firm American Securities has just closed a $2.3bn fund with a 25-year lock-in:
American Securities, a leading middle-market private equity firm with a successful history of investing with management teams and business owners for the long-term, today announced the closing of American Securities Partners V, an unprecedented 25-year investment fund with committed capital of more than $2.3 billion.
ASP V is the fifth fund raised by American Securities. The firm and its affiliates now have approximately $6 billion under management. American Securities is led by seven Managing Directors who average more than 14 years each at American Securities. They are Michael G. Fisch, Charles D. Klein, David L. Horing, Paul Rossetti, Glenn B. Kaufman, Matthew F. LeBaron and Marc L. Saiontz…
In announcing the closing of ASP V, American Securities President and CEO Michael Fisch said, ‘We are delighted to continue building on our long-standing high net worth family and endowment relationships in ASP V. We are also pleased to have attracted select new investors, a number of whom are international investors that expand our geographic reach on behalf of our U.S.-based portfolio companies to additional countries around the world. Our investors understand our enthusiasm to help managers build their companies for the long-term. The unique 25-year investment horizon of this partnership will allow us to continue to create high long-term, risk-adjusted rates of return for our management partners and investors.’
We know there’s a trend for longer lock-in periods, not just for buyout firms but for hedge funds as well, but really, 25 years? Investors must have massive confidence in the abilities of American Securities management (not to mention the continuation of current financial systems). The New York-based firm’s investments so far include old-fashioned deli chain, Potbelly Sandwich Works, and FiberMark, which makes materials for everything from annual report covers to bibles.
