Industrial decarbonization-focused private equity investor Ara Partners announced that it has raised more than $800 million at the closing of the debut fund of its Ara Infrastructure strategy, and associated co-investment vehicles, aimed at investing in in mid-market decarbonization infrastructure assets.
The fundraising significantly exceeded the fund’s $500 million target.
Launched in 2022, the strategy, led by Ara co-Heads of Infrastructure George Yong and Teresa O’Flynn, focuses on the “overlooked middle” of the low-carbon infrastructure market, targeting critical assets that need to be built, repurposed or rebuilt, to decarbonize the industrial economy, with the firm noting that most market investments to date have flowed to large-cap and conventional renewables.
O’Flynn said:
“This Fund enables us to pursue a generational investment opportunity across Europe and North America, characterized by increasing energy and industrial demand, a move towards decentralized energy systems, as well as the need to ensure an economic path toward a lower carbon economy.”
The strategy has completed three investments to date – with a fourth expected shortly – and owns 12 operational assets across North America and Europe. Portfolio companies include U.S.-based terminal services provider Lincoln, renewable fuel feedstock and biofuel logistics infrastructure developer USD Clean Fuels, and Irish organics recycling company Natural World Products.
Yong said:
“Ara’s builder capabilities and DNA ideally position us to navigate the disjointed, yet opportunity-rich, world of middle-market sustainable infrastructure. Companies in our target sectors seek more than just a capital provider; we believe our in-house operational capabilities make us a value-add partner of choice. We look forward to supporting exceptional teams and companies across these sectors.”
