Ara Partners closes second fund and expands presence in Europe

The US private equity firm closes its second fund in six months after collecting $1.1bn in commitments.

  • Fund name: Ara Partners II
  • Amount raised: $1.1 billion
  • Target size: $650 million
  • Stage of fundraising: Final close
  • Time on the road: Six months
  • Predecessor fund: Ara Partners I ($400 million)
  • Placement Agent: Lazard
  • Legal adviser: Debevoise & Plimpton

Ara Partners, the US private equity firm specialising in industrial decarbonisation investments has announced the final close of its second fund at $1.1 billion hard-cap, after spending just six months on the road. The fund was significantly oversubscribed, thus comfortably exceeding the $650 million initial target size.

The Fund received commitments from a diverse set of returning and a new set of institutional investors in North America, Europe and Asia, including public pensions, sovereign wealth funds, endowments and foundations.

The previous fund in the series closed last year with $400 million in capital commitments. The second vehicle will follow a similar strategy as its predecessor, as well as keep its focus on industrial and manufacturing, green fuels, food, and agriculture sectors. The current portfolio companies of Fund II are Polar Sapphire, Aloxe, Px Group, Anesco, and Divert. Ara is expected to announce the fund’s sixth platform investment in the near future.

Also in the announcement, the opening of an office in Dublin, Ireland with an expansion of the team by hiring five new investment professionals: Christopher Picotte as a partner; Luis Pais Correia as a senior operating partner; Lisa O’Brien as general counsel, Europe; Myles O’Shaughnessy as a principal, and Chris Seenan as a vice-president. The new office will be leveraged to increase its European presence and be at the forefront of global decarbonisation.