Ara Fund III and Investor Support
Ara Partners has successfully concluded the fundraising for Ara Fund III, securing $2.8 billion in limited partner commitments along with dedicated limited partner co-investment vehicles.
The fund received strong backing from Ara’s existing investor base and saw participation from a diverse group of new institutional investors, including pension funds, insurance companies, sovereign wealth funds, endowments, and foundations from North America, Europe, and the Asia-Pacific region.
Focus and Investments of Fund III
Ara Fund III concentrates on buyout and growth investments within the industrial decarbonization sector.
The fund has already completed four investments, namely Vacuumschmelze, a global leader in advanced magnetic materials; Genera, a sustainable pulp and packaging producer; CFP Energy, offering environmental and green energy solutions in Europe; and CycleØ, a fully integrated developer of distributed biomethane facilities.
Strategic Approach and Geographic Focus
With a focus on reducing carbon emissions, Ara Fund III leverages significant technical and operations expertise. The fund intends to pursue buyout and growth investments in industrial companies primarily based in the United States, Canada, and Europe.
The targeted sectors for carbon reduction include industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, as well as food and agriculture.
Ara Partners Background and Previous Fund
Established in 2017 by Charles Cherington and Troy Thacker, Ara Partners is a private equity and infrastructure firm specializing in industrial decarbonization investments.
The firm operates from offices in Houston, Boston, and Dublin, Ireland. Ara Fund II, its predecessor, successfully closed in September 2021, raising approximately $1.1 billion, surpassing its initial target of $650 million. Ara Partners manages total assets of around $5.6 billion.
Experienced Investment Team
Ara Partners boasts an experienced investment team, including Partners Chris Picotte, Cory Steffek, and Tuan Tran, along with Teresa O’Flynn and Churchill George Yong, Co-Heads of the Firm’s infrastructure strategy.
The team, operating from offices in Houston, Boston, and Dublin, is supported by a cadre of operating professionals with diverse industry experience.