Aurora Capital Partners Secures $2.1 Billion for Middle-Market Investments

Aurora Capital Partners, a prominent private equity firm based in Los Angeles, has recently announced a significant milestone by successfully raising over $2.1 billion in capital commitments for its latest fund, Aurora Equity Partners VII (AEP VII). This substantial financial achievement not only surpasses the firm's initial fundraising goal but also reflects the ongoing confidence of both new and existing investors in Aurora’s strategy and leadership.

Overview of AEP VII

AEP VII is set to target investments in U.S. middle-market companies across varied sectors, including business services, industrial services, and tech-enabled services. The firm, founded in 1991 and with a track record of more than two decades, emphasizes investing in businesses that exhibit strong potential for accelerated growth and strategic transformation.

The firm has been steadfast in its investment methodology, which focuses on market-leading enterprises with promising growth trajectories. The primary aim of AEP VII is to utilize Aurora’s Strategy Operations Program to enhance scalable operations and drive performance improvements within its portfolio companies.

This fund has emerged as the largest since Aurora’s inception, and notably, it follows the predecessor fund, Aurora Equity Partners VI, which closed at $1.65 billion in 2021. The firm has consistently demonstrated its ability to attract capital from a diverse range of institutional investors, including public and corporate pension funds, insurance companies, family offices, and asset managers.

Insights from Firm Leaders

Josh Klinefelter, Partner at Aurora, expressed profound gratitude for the unwavering support from long-standing limited partners while welcoming an impressive lineup of new investors for AEP VII. Klinefelter stated, “The successful close of this fund reflects a strong endorsement of our team's ability to drive scale and strategic transformation across our companies. We look forward to building on this momentum and delivering outstanding results for our stakeholders.”

Mark Rosenbaum, another partner, shared enthusiasm about the vast opportunities presented in the sectors Aurora aims to invest in. He noted, “We are energized by the significant opportunities we see to build unique, market-leading companies across our target sectors, and we look forward to executing our strategy while further strengthening our capabilities as a firm in the years ahead.”

Recent Investments and Future Prospects

Since the launch of AEP VII, Aurora has already secured investments that illustrate its strategic commitment. Notably, in August 2024, the fund completed a significant investment in GenServe, recognized as the largest independent provider of commercial and industrial standby power generators in the United States.

Moreover, Aurora has expressed readiness for future projects, showcasing a robust pipeline of potential investments. Despite a challenging exit market, the firm has demonstrated its resilience through announcements such as the sale of FMG, a leading provider of cloud-based marketing automation tools for financial advisors, to GTCR, a Chicago-based private equity firm. This follows the successful recapitalization of PSC Group, a leading embedded logistics provider.

Conclusion

With Aurora Capital Partners continuing to leverage its extensive experience and strategic methodologies, the firm remains well-positioned to not only navigate the complexities of the current market landscape but also to drive substantial growth in its investments. As the firm embarks on this exciting new chapter with AEP VII, stakeholders and investors alike are eager to see the transformative impacts that these investments will yield for the broader market.