Insight

Ara Partners collects $3bn for third fund

Ara Fund III's LPs include pension funds, insurance companies, sovereign wealth funds, endowments, and foundations from North America, Europe, and the Asia-Pacific region.

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  • Fund III will invest in the decarbonization of the industrial economy
  • Ara’s previous fund, Ara Fund II, closed in September 2021 at approximately $1.1 billion, above its $650 million target
  • Rede Partners acted as placement agent

Ara Partners has closed at $3 billion for its third fund, beating its initial $2 billion target.

Ara Fund III’s limited partners include pension funds, insurance companies, sovereign wealth funds, endowments, and foundations from North America, Europe, and the Asia-Pacific region.

Fund III will invest in the decarbonization of the industrial economy.

Ara’s previous fund, Ara Fund II, closed in September 2021 at approximately $1.1 billion, above its $650 million target.

“We are grateful for the extraordinary interest in Fund III demonstrated by Ara’s increasingly global, blue-chip investor base,” said Charles Cherington, managing partner of Ara in a statement. “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. We look forward to collaborating with our world-class portfolio company management teams to generate strong returns for our investors in the coming years.”

Rede Partners acted as placement agent, and Debevoise & Plimpton LLP served as legal counsel in the formation of Fund III.

Ara Partners operates from offices in Houston, Boston and Dublin, Ireland. As of September 30, 2023, Ara Partners had approximately $5.6 billion of assets under management.