#USA #decarbonization #Boston #Infrastructure Fund #Ara Partners

Ara Partners Exceeds Fundraising Goals with Significant Infrastructure Investment

Ara Partners, recognized globally for its commitment to decarbonizing the industrial sector, has recently announced some exciting news: the firm has successfully raised over $800 million for its inaugural Ara Infrastructure Fund. The total raised surpasses the initial target of $500 million, indicating robust support from both existing and new institutional investors. These include pension funds, insurance companies, and sovereign wealth funds from North America, Europe, and the Asia-Pacific region, emphasizing a diverse and expansive investor base.

The firm’s infrastructure venture is spearheaded by industry veterans George Yong and Teresa O'Flynn. Their strategy primarily focuses on mid-market infrastructure, particularly aimed at developing and repurposing high-quality legacy assets in line with a low carbon industrial economy. Since its inception in 2022, Ara Infrastructure has already completed three significant investments. The fund currently operates 12 assets in North America and Europe, showcasing its expansive reach and operational capacity.

Key Investments within the Fund

The portfolio of the Ara Infrastructure Fund includes notable players such as:

• - Lincoln: A leading provider of terminal services, showcasing a robust footprint in the Southeastern and Mid-Atlantic regions of the United States.
• - USD Clean Fuels: This company is pivotal in developing renewable fuel feedstock and biofuel logistics infrastructure, particularly on the U.S. West Coast.
• - Natural World Products: Operating in Northern Ireland and the Republic of Ireland, this firm stands out as a significant organics recycler, managing over 330,000 tonnes of household waste each year.

Vision for the Future

Teresa O'Flynn, Co-Head of Infrastructure at Ara Partners, expressed her pride in reaching this milestone. She highlighted the strategic advantage provided by the fund: “This Fund enables us to pursue a generational investment opportunity across Europe and North America, characterized by increasing energy and industrial demand, and a movement towards decentralized energy systems.” O’Flynn emphasized that this is a unique chance to ensure a sustainable transition towards a lower carbon economy, thus safeguarding the future viability of businesses.

Echoing this sentiment, George Yong reinforced Ara's commitment to delivering attractive risk-adjusted returns to investors through the classic infrastructure characteristics inherent in the fund. He noted, “Ara’s builder capabilities and DNA ideally position us to navigate the disjointed, yet opportunity-rich, world of middle-market sustainable infrastructure.” This strategic approach reinforces Ara Partners as a preferred partner, going beyond typical capital provision to enhance operational capacities for targeted companies.

Supporting Exceptional Teams

With its focused investment strategy, Ara Partners is poised to support exceptional teams and companies navigating modern infrastructure’s complexities. The firm’s partnership with Rede Partners served as a placement agent while Debevoise & Plimpton LLP handled legal counsel during the fund's formation, ensuring a streamlined and robust financial process.

A Comprehensive Approach to Decarbonization

Founded in 2017, Ara Partners is dedicated to transforming the industrial economy through private equity and infrastructure investments aimed at significant decarbonization impacts. The company seeks growth and optimization opportunities primarily within the industrial and manufacturing, chemicals and materials, energy efficiency and fuels, and food and agriculture sectors. With approximately $6.2 billion of assets under management as of December 31, 2024, Ara is firmly positioned at the forefront of sustainable investment.

For further details, visit Ara Partners’ official website.

Conclusion

As Ara Partners strides forward, its commitment to a sustainable industrial future resonates not just within investment circles but also among those dedicated to combating climate change. Companies with decarbonization goals will undoubtedly benefit from Ara's innovative approach and extensive experience, marking the firm as a key player in the infrastructure investment landscape.