Special Opportunity Funds
CEA established its Communications, Media and Entertainment ("CME")-focused private equity funds 25 years ago at a time when the market was underserved with financial vehicles for that sector. Independently in some cases, and in conjunction with unaffiliated banking institutions and others, CEA and its affiliates have managed, co-managed or participated in a worldwide family of private equity funds with committed capital of approximately $1.15 billion for private equity investments in the industries CEA serves.
The CME focus came naturally for CEA because by the beginning of our private equity efforts, the firm’s personnel had many years of experience in the sector in making direct investments in privately-held CME companies -- including operating responsibilities in several of the investments -- and in providing investment banking services for many more CME clients.
CEA’s private equity fund endeavors have provided CEA and its staff the experience in raising and administering fund vehicles on a professional basis and, while we continue to pursue CME opportunities, we are now using that knowledge to form vehicles in other market segments. We are seeking to exploit opportunities where we have developed expertise internally through our investment banking activities and by teaming with individuals and companies that have expertise in areas that we find have significant investment potential.
Specialized real estate, for example, was targeted through the Atlantic American Partners ("AAP"), 50% owned by CEA with two partners whose expertise included real estate, private equity, and venture capital. As part of the AAP strategy, initial special opportunity funds were developed to focus on the purchase of performing commercial mortgages at a modest discount, but with substantial leverage. CEA's Private Equity Group and AACG sponsored an experienced management team, which successfully raised two leverage funds from high-net worth individuals focused on the purchase of performing commercial loans. The management of these two funds has successfully raised two follow-on funds.
In keeping with the diversified nature of our business model, AAP has established a series of private equity funds focused on helping foreign nationals obtain permanent residency in the United States through the federal EB-5 Investor Visa Program. AAP's approach is different from other EB-5 offerings, as it provides a professionally managed platform where EB-5 applicants own interest in multiple assets, not just one, providing a higher level of investment security through diversification. Since 2010, AAP has invested over $225,000,000 of equity in 24 different EB-5 qualified projects through six funds under the Atlantic American Opportunities Fund and Atlantic American Fortune Fund brands, assisting over 450 familiies with their immigration process.
CEA is continually on the lookout for new opportunities to partner with professionals who have previously managed investment funds and who have conceived new financing concepts for focused investment vehicles.