Ara Partners, a specialist buyout firm focuses on industrial decarbonization investments has closed Ara Fund II with $1.1bn of investments, almost triple the size of its $400m predecessor Fund I. The oversubscribed fund is also just shy of reaching two times its initial target of $650m.
The firm said Fund II would continue to invest in the ongoing decarbonization of the industrial economy, seeking investment opportunities in the US, Canada and Europe. It will target both buyout and industrial growth investments in high-growth companies in industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture sectors.
Fund II has already made five investments including high purity alumina producer Polar Sapphire, PET plastic recycling platform Aloxe, renewables focused industrial asset operator px Group, renewable energy project manager Anesco and retail food waste recycler Divert.
Charles Cherington, managing partner of Ara Partners, said, “We are extremely gratified by the very strong interest in Fund II and pleased to welcome several well-respected institutional investors to our limited partner base. We particularly appreciate the support of our returning investors from Fund I and look forward to pursuing strong returns for all of our partners through an investment portfolio that is actively reducing GHG emissions, carbon and waste.”
The firm has also opened a new Dublin office with five new hires – Christopher Picotte as a partner, Luis Pais Correia as senior operating partner, Lisa O’Brien as general counsel-Europe, Myles O’Shaughnessy as principal and Chris Seenan as vice president.
Troy Thacker, managing partner at Ara, said, “Europe is clearly at the forefront of the global decarbonization movement. Our Dublin office provides us with a meaningful foothold in this important market and will be supported by a strong team of professionals with decades of experience investing in the industrial sector in Europe and with established networks across the industry.”
Ara hit a $400m final close for its debut fundraise last year. The fund targets companies in North America and Europe.
It expanded its team with the hiring of Robert Bond and Adam Hodgson as associates in August and the promotion of Johanna Schmidtke to managing director last year.
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