Insight

Arsenal racks up $5.4bn across two funds

Arsenal Capital Partners VI LP closed at $4.3 billion, beating its $3 billion target.

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  • Arsenal’s previous fund closed at $2.4 billion
  • The limited partners for both funds include public and corporate pension plans, family offices, endowments and foundations, and financial institutions
  • Kirkland & Ellis LLP provided legal counsel to the funds and Arsenal

Arsenal Capital Partners has raised $5.4 billion across two new funds.

Arsenal Capital Partners VI LP closed at $4.3 billion, beating its $3 billion target. Arsenal’s previous fund closed at $2.4 billion.

In addition, Arsenal Capital Partners Growth LP closed at a hard cap of $1.1 billion, beating its $750 million target.

“We are extremely grateful for the support from and relationships with our long-time investors,“ said Terry Mullen, managing partner of Arsenal, in a statement. “We achieved a gratifying, high re-up rate from our existing institutional investors, who on average increased their commitments by 59% from the previous fund, and we are delighted to have attracted an exceptional group of new investors that will further bolster our market-leading institution.”

Fund VI will focus on investments in industrials and healthcare businesses. The growth fund will execute a similar strategy in the same markets but pursue investments in next generation, emerging technology businesses poised to apply innovation to generate very high growth.

Fund VI and the Growth Fund’s limited partners include public and corporate pension plans, family offices, endowments and foundations, and financial institutions, including The University of California’s Office of the Chief Investment Officer (UC Investments), California State Teachers’ Retirement System, California Public Employees’ Retirement Systems, affiliates of APG Asset Management, The Oregon Public Employees Retirement Fund, affiliates of IIP A/S, and Minnesota State Investment Board.

Kirkland & Ellis LLP served as legal counsel for Arsenal, Fund VI, and the Growth Fund.

Arsenal Capital Partners specializes in investments in industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds totaling over $10 billion, completed more than 250 platform and add-on acquisitions, and achieved more than 30 realizations.