Ara Partners closes US$400m fund

Ara Partners, a private equity firm specializing in industrial decarbonization investments, has closed its debut fund, Ara Fund I, LP, with approximately US$400 million in capital commitments. Ara Partners was co-founded by veteran investors Charles Cherington and Troy Thacker.

The Fund will invest in companies in North America and Europe that are poised to accelerate the decarbonization of the industrial economy. The Fund was backed by a diverse group of institutional investors in North America, Europe, and Asia, including public pensions, sovereign wealth funds, endowments, foundations, and family offices.

The Fund builds on the team’s diversity of experience and industry-rooted insight into how the demands of the industrial sector can be met by low-carbon offerings. Current portfolio companies of the Fund include Puraglobe (a carbon-negative producer of high-specification synthetic lubricants), Transform Materials (a process technology provider for the low-carbon production of acetylene and high-purity hydrogen), Priority Power Management (an independent energy management services provider of renewable power and demand response solutions to industrial and commercial businesses) and Centric Infrastructure Group (an innovative local fiber and energy infrastructure company). The Fund has made two additional industrial growth investments that are not publicly disclosed at this time.

Atlantic-Pacific Capital served as the Fund’s exclusive global placement agent and Foley & Lardner, LLP provided legal counsel.