Ara Partners Raises Over $3B for Industrial Decarbonization

Ara Partners, a private equity and infrastructure firm focused on industrial decarbonization, has closed on more than $3 billion in new funding commitments, including $2.8 billion in limited partner commitments for Ara Fund III, as well as dedicated LP co-investment vehicles.

The fund exceeded its initial $2 billion target, receiving commitments from new and current institutional and public investors from North America, Europe, and Asia-Pacific.

The fund will make buyout and growth investments in industrial companies primarily in the United States, Canada, and Europe.

“The growing, global presence of Ara’s platform and portfolio directly reflects the industrial economy’s continued demand for the technological innovation and infrastructure needed to decarbonize,” said Troy Thacker, ARA managing partner.

It has already completed four investments: Vacuumschmelze, a producer of advanced magnetic materials; Genera, a sustainable pulp and packaging producer; CFP Energy, which provides solutions in environmental and green energy products; and CycleØ, a fully integrated developer of distributed biomethane facilities.

Ara Fund II, Ara’s previous fund, closed in September 2021 at around $1.1 billion, exceeding its $650 million target. Ara manages around $5.6 billion in total assets.