ASI raises USD425m for lower mid-market private equity fund

Aberdeen Standard Investments (ASI) has closed Aberdeen US Private Equity VIII (APE VIII), its eighth US private equity fund. The fundraising, which was completed in less than nine months, exceeded the firm’s USD350 million target and was oversubscribed. 

APE VIII, which closed on 23 December, will invest in a strategically concentrated portfolio of small-cap private equity funds, direct investments and secondary transactions, with a geographic focus on North America. The strategy is designed to capture outperformance potential of the lower middle market private equity ecosystem.

Scott Reed, co-head of US Private Equity at Aberdeen Standard Investments, says: “Against a backdrop of compressing returns and a more competitive private equity landscape, investors are increasingly looking to tap into less efficient areas, like the lower middle market. But this is a hard segment for most investors to navigate given its breadth and complexity. We have spent nearly 20 years honing our approach to investing in this space and look forward to delivering continued strong returns for our partners.”
The fundraise attracted capital from a mix of existing clients/consultants as well as new investors, and included a blend of corporate and public pension plans, foundations and endowments, and ultra high net worth families.
Chris Demetriou, CEO of the Americas for ASI, adds: “We are pleased to have completed our fastest fundraise ever for our small buyout strategy, which we believe reflects investors’ appreciation for our disciplined investment approach, the depth of our team, and our consistent outperformance.”
ASI has over 50 investment professionals globally focused on private equity and venture capital, including a 12 person team dedicated to US private equity led by co-heads Scott Reed and John Dickie.