Ara Partners, a Houston, TX-based private equity and infrastructure investment firm, closed over $3 Billion in new capital commitments for ARA Fund III.
The firm concluded the fundraising for Ara Fund III closing on $2.8 billion of limited partner commitments, alongside dedicated limited partner co-investment vehicles.
The fund, which received the support from Ara’s existing investor base and a diverse set of new institutional investors comprised of pension funds, insurance companies, sovereign wealth funds, endowments, and foundations from North America, Europe, and the Asia-Pacific region, focuses on buyout and growth investments in industrial decarbonization sector.
Fund III has already completed four investments:
- Vacuumschmelze, a global producer of advanced magnetic materials and the largest producer of rare earth permanent magnets in the Western Hemisphere;
- Genera, a sustainable pulp and packaging producer;
- CFP Energy, which provides market-facing solutions in environmental and green energy products to industrial customers across Europe; and
- CycleØ, a fully integrated developer of distributed biomethane facilities.
Leveraging significant technical and operations expertise, the vehicle will pursue both buyout and growth investments in industrial companies primarily headquartered in the United States, Canada and Europe that have the potential to achieve reductions in carbon emissions across sectors, including industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture.
Founded in 2017 by Charles Cherington, and Troy Thacker, Ara Partners is a private equity and infrastructure firm focused on industrial decarbonization investments. It invests in the industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, infrastructure, and food and agriculture sectors, seeking to create companies with significant decarbonization impact. It operates from offices in Houston, Boston and Dublin, Ireland. Ara’s predecessor fund, Ara Fund II, closed in September 2021 at approximately $1.1 billion, above its $650 million target. The firm has total assets under management of approximately $5.6 billion.
Ara’s experienced investment team also includes Partners Chris Picotte, Cory Steffek, and Tuan Tran, as well as Teresa O’Flynn and Churchill George Yong, Co-Heads of the Firm’s infrastructure strategy. The investment team operates from offices in Houston, Boston, and Dublin, and is supported by a deep bench of operating professionals with experience across industries.
FinSMEs
14/12/2023