Private equity firm Arsenal Capital Partners has completed fundraising for Arsenal Capital Fund III with USD875m of committed capital, exceeding its target of USD750m.
The firm’s previous fund, Arsenal Capital Partners II, was raised in 2006 with USD500m of committed capital. Arsenal now has over USD1.6bn of committed capital under management.
Terrence Mullen (pictured), co-founder and partner at Arsenal, says: "We are delighted to have surpassed our expectations for Fund III and achieved a 75 per cent increase in committed capital from our last fund. We sincerely thank all our investors for their tremendous support. We are very gratified by the investors’ response, citing the institutional quality of our firm committed to the opportunities and needs of the lower middle market, our leading franchises in specialty industrials and healthcare, and track record of building high performance companies."
The fund’s investor base is international in scope, with approximately half of the institutional investors from the US and the balance from Europe and Asia. The investor base represents a diverse group of endowments and foundations, public and corporate pension plans, financial institutions and family offices, including PKA A/S, Northwestern Mutual Life Insurance, PPM America, Northeast Utilities Service Company Retirement Plan, KIRKBI A/S, Partners Capital, Unigestion, Storebrand, Purdue University, funds advised by Bowmark Capital and Cheyenne Capital Fund.
Arsenal has an exclusive focus on lower middle market transactions between USD50m and USD250m of enterprise value. Arsenal focuses on companies with headquarters in the US and significant operations and growth opportunities in both the US and internationally.
Arsenal has already completed four platform investments and deployed approximately USD195m of equity capital in Fund III.
