Aaron Wolfe, a senior executive at Arsenal Capital who helped lead the firm’s specialty industrials team, left to start his own shop, two sources told Buyouts.
Wolfe will join the ranks of former private equity dealmakers who have left bigger firms to start the challenging journey of starting their own shops. New fund formation has been made more difficult as limited partners are being kept busy by their existing managers coming back quicker than ever with new, and larger, funds.
Still, LPs are looking to back talented PE execs who have compelling strategies targeting sectors and industries to which they may not have tons of exposure.
A spokesperson for Arsenal confirmed the departure. Wolfe, prior to joining Arsenal in July 2020, worked for 18 years at Sun Capital, most recently leading the firm’s New York office, according to an Arsenal press release
Wolfe will be starting his own shop with another partner on the West Coast, the two sources said. Wolfe has been planning a first fund, though it’s not clear how much he’ll target. One source speculated that, because of his experience, he could try for at least $600 million.
Wolfe did not respond to a LinkedIn request to connect.
It’s not clear if Arsenal is moving someone into Wolfe’s role. The firm, which invests in mid-market and healthcare companies, has been targeting $3 billion for its sixth fund, according to a Form D fundraising document last year.