American Securities raises megafund

Joining the ever-expanding league of megafunds, New York-based private equity firm American Securities Capital Partners (ASCP) announced the final closing of its fourth investment fund, its largest ever, with $1 billion (€746 million) in commitments.

According to a press release, the fund exceeded its original $750 million target through the commitment of new investors, primarily wealthy families and endowments. American Securities president Michael Fisch noted that half of the fund’s capital comes from affluent families, individuals and related entities.

American Securities Capital Partners entrance into billion dollar territory marks an interesting historical development for the firm. The company is the merchant banking arm of American Securities, whose predecessor entity was founded by William Rosenwald in 1947 to invest his family’s share of the Sears Roebuck & Co. fortune.  Affiliates of American Securities, including the William Rosenwald family, have been the largest investors in all four ASCP funds.

American Securities latest fund far surpasses what the firm has previously raised through outside investors. Its last fund, American Securities Partners (ASP) III closed in July 2001 on $650 million. Its prior two funds, ASP I and ASP II closed on $120 million and $350 million in December 1994 and June 1998, respectively.

In the third quarter, ASCP tapped its third fund to make an investment in direct marketer Philips Health, a division of Philips International, in conjunction with ACI Capital. According to reports, the fund was approximately 60 percent invested post-transaction.