Firm: Arsenal Capital
Fund: Arsenal Capital Partners III LP
Target: More than $500 million
After reeling in a pair of oversubscribed funds since its founding in 2000, and generating positive returns on both, Arsenal is likely to raise far more than the $500 million secured for its most recent vehicle.
Arsenal’s attempt to raise a third fund comes after two oversubscribed vehicles for the PE firm in the last decade: a 2003 $300 million fund and a 2006-vintage, $500 million fund,
Arsenal just hired a new head of investor relations, William Farrell, who only recently retired from placement agent Farrell Marsh. Farrell had founded Farrell Marsh with Charles A. Marsh as an expansion of his Farrell Capital Corp.
The firm is likely to begin marketing its next fund in summer or fall. Dates for a first close have not yet been determined.
Although existing limited partners are expected to participate, more LPs will be brought into the fund when Arsenal and Farrell begin marketing later this year. Prior LPs include
According to published return information, Arsenal’s first fund generated a 30 percent gross IRR and a 21 percent net IRR. With its current fund only 70 percent deployed, Arsenal is expecting a positive return on it as well.
The firm was formed in 2000 by
Already this year, Arsenal has been deploying capital from its second fund. In January, Arsenal’s Novolyte Technologies teamed with Foosung Co., the Korean battery maker, to produce lithium ion battery electrolytes in a joint venture. The firm also participated in a follow-on equity offering for KGS-Alpha Capital Markets that the