Aberdeen celebrates fastest small buyout strategy fundraise with $450m APE VIII close

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Aberdeen Standard Investments has hit a target-busting $450m final close for its eight US private equity fund.

The raise is ASI’s fastest ever in its small buyout strategy, having taken less than nine months. ASI was initially targeting $350m for the vehicle.

ASI said APE VIII will invest in a concentrated portfolio of small-cap private equity funds, direct investments and secondary transactions, with a focus on North America.

The firm said the strategy was designed to capture the outperformance potential of the lower mid-market private equity ecosystem.

Scott Reed, co-head of US private equity at ASI, said, “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.”

ASI was known as Aberdeen Asset Management before a 2017 merger with pensions, savings and financial services provider Standard Life.

The firm raised at least $338m for its predecessor vehicle, Aberdeen US Private Equity VII, in 2018.

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