Ara Partners Achieves Significant Milestone with Inaugural Infrastructure Fund, Over $800 Million Raised

Ara Partners Surpasses Expectations with New Infrastructure Fund

Ara Partners, a notable global investment firm focusing on the decarbonization of industrial sectors, has made headlines by successfully raising over $800 million for its inaugural Ara Infrastructure Fund. This achievement is particularly remarkable as it exceeds the initial target of $500 million. The firm’s mission is to address the urgent need for sustainable infrastructure while generating returns for their investors.

The fund's establishment was supported by a strong base of existing investors as well as various new institutional players, including pension funds, insurance companies, and sovereign wealth funds from North America, Europe, and the Asia-Pacific region. Ara Partners aims to invest in mid-market infrastructure, specifically targeting projects that either develop new low-carbon facilities or adapt existing ones for a cleaner industrial economy.

Since the strategy was launched in 2022, Ara Infrastructure has already made three investments, with a fourth commitment anticipated soon. The fund currently manages a diverse portfolio comprising 12 operational assets located across North America and Europe, which highlights its strategic approach to investment and development. Notable investments include businesses such as Lincoln, a significant terminal services provider in the Southeastern and Mid-Atlantic U.S., and USD Clean Fuels, known for its renewable fuel production and logistics on the U.S. West Coast.

Another key player in their investment portfolio is Natural World Products, a leader in organics recycling based in Northern Ireland and the Republic of Ireland, which processes over 330,000 tonnes of household waste annually. This diversified portfolio underscores Ara's commitment to driving change in the industrial sector by focusing on sustainable practices.

Teresa O'Flynn, a partner and co-head of infrastructure at Ara Partners, expressed pride in the firm's achievement, highlighting the support from investors as a crucial factor. She emphasized that the fund enables the firm to seize investment opportunities across Europe and North America, where there is growing demand for energy and industrial services, alongside a push towards decentralized energy systems. This highlights Ara’s commitment to not only delivering attractive investor returns but also facilitating the vital energy transition towards a lower carbon economy.

George Yong, also a partner and co-head of infrastructure, noted the firm's aim of providing risk-adjusted returns while maintaining classic infrastructure characteristics. He reaffirmed Ara’s strength in navigating the middle-market sustainable infrastructure landscape, which is often characterized by disjointed opportunities. Yong mentioned that companies in their target sectors seek partners who offer more than just capital; they require value-added support, which Ara aims to deliver through its operational capabilities.

As a firm founded in 2017, Ara Partners is dedicated to creating significant decarbonization impacts across various industries, including manufacturing, energy efficiency, and agriculture. With approximately $6.2 billion in assets under management as of December 2024, the firm operates from strategic locations across Houston, Boston, Dublin, and Washington, D.C. Moving forward, Ara Partners is poised to play a critical role in the transition to a sustainable industrial economy, utilizing its expertise and partnerships to redefine infrastructure investment for the future.

For more information on Ara Partners and their initiatives, visit their website at www.arapartners.com.