Ara nears $2bn target for third industrial decarbonisation PE fund

Ara Partners has been scaling rapidly over the past few years, raising nearly double its target for Fund II.

Ara Partners, a Texas-based private equity firm specialising in industrial decarbonisation, is nearing the $2 billion target for its third flagship fund. SEC filings show it has so far raised $1.9 billion from 94 investors across two entities (those filings are here and here).

The fund was launched last year, alongside a $300 million-target infrastructure fund, New Private Markets exclusively reported. It is a global strategy investing in decarbonisation solutions for industries such as manufacturing, materials and chemicals, energy, food and agriculture.

Rede Partners is the placement agent for the fund.

Ara Partners was established in 2017. It closed its first fund in 2020 at $400 million – $100 million shy of its target – but has since been scaling rapidly. Fund II closed in 2021 at $1.1 billion, having targeted $600 million. Among the LPs in Fund II are Texas Municipal Retirement System, which committed $75 million; Alaska Permanent Fund, which committed $40 million; and the Denver Foundation (undisclosed commitment amount), according to New Private Markets‘ database.

The firm has been on a hiring spree over the past year, with its latest addition being Kaitlin Fronczek, a former vice-president at Apax Partners, as an investor relations director.