Ara Partners, a private equity and infrastructure firm that specialises in industrial decarbonisation investments, has announced the successful closing of over $3 billion in new capital commitments, including $2.8bn of limited partner commitments for Ara Fund III, alongside dedicated LP co-investment vehicles.
The Fund was significantly oversubscribed at an increased hard cap, exceeding its $2bn initial target, and received the support of 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.
Fund III will continue Ara’s strategy of investing in the decarbonization of the industrial economy, the greatest source of carbon emissions globally. Leveraging significant technical and operations expertise, the Fund 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.
Ara’s predecessor fund, Ara Fund II, closed in September 2021 at approximately $1.1bn, above its $650m target. Ara has total assets under management of approximately $5.6bn.
