Industrial decarbonization-focused private equity investor Ara Partners announced that it has closed on more than $3 billion in new capital commitments, and concluded fund raising for its third fund, Ara Fund III.

With commitments of $2.8 billion, the oversubscribed Fund significantly exceeded its initial $2 billion target. Ara’s predecessor fund, Ara Fund II, closed in September 2021 at approximately $1.1 billion.

Charles Cherington, Managing Partner of Ara, said:

“We are grateful for the extraordinary interest in Fund III demonstrated by Ara’s increasingly global, blue-chip investor base. The strong support from new and existing investors, is a testament to their confidence in our talented team, our investment strategy, and the compelling opportunities in the industrial decarbonization sector.”

Founded in 2017 by Cherington and Troy Thacker, Ara Partners specializes in industrial decarbonization investments, in sectors including industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, infrastructure, and food and agriculture.

According to the firm, the newly closed fund will target both buyout and growth investments, at companies based in the U.S., Canada and Europe, with the potential to achieve carbon emissions reductions across sectors. The fund has already completed four investments, including magnetic materials and rare earth permanent magnet producer Vacuumschmelze, sustainable packaging producer Genera, green energy solutions company CFP Energy, and biomethane facility developer CycleØ.

Thacker said:

“The growing, global presence of Ara’s platform and portfolio directly reflects the industrial economy’s continued demand for the technological innovation and infrastructure needed to decarbonize. The support we have received for Fund III will enable the Ara team to continue investing in high-growth companies globally that are positioned to build value while achieving positive environmental impacts.”