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Ara Partners Successfully Closes $2.5 Billion Energy Fund

Ara Partners, a prominent global investment firm that focuses on the realms of energy and industrial transition, proudly announced the successful final closure of its inaugural Ara Energy Fund I. This strategic move has netted an impressive total of $2.5 billion, composed of $1.8 billion in direct fund commitments, complemented by over $700 million from related co-investments.

The fund's journey originated in the second quarter of 2025, culminating in its final closure only 10 months later, which signifies its hard-cap being reached against a backdrop of increasing investment traction. Notably, support for the fund stemmed not only from Ara's long-standing investors but also witnessed an expansion of its limited partner network. This diversification included institutional investors like pension funds, insurance entities, sovereign wealth funds, as well as renowned endowments and foundations across both North America and Europe.

Investment Strategy and Portfolio

The Ara Energy Fund aims to strategically invest in crucial areas of the energy market, specifically across three pivotal sectors: power generation, biofuels, and delivery and distribution. This diversified approach facilitates optimization and decarbonization of essential energy assets along the conventional energy value chain. The team behind Ara Energy comprises notable talents from the industry like Shameek Konar, James Chiu, David Sims, and Matthew Dunn, who collectively bring a wealth of operational and merger & acquisition experience from their years of collaboration prior to joining Ara.

As part of its roadmap, Ara has initiated the development of a substantial seed portfolio that currently comprises:

• - Power Thermal Generation: The fund has focused on thermal generation assets within markets like NYISO, ISO-NE, and PJM, accumulating a capacity of approximately 3.0 gigawatts.
• - Renewable Fuels: The fund has invested in ethanol production assets yielding around 400 million gallons annually.
• - Delivery and Distribution: An expansive network known as JET, consisting of roughly 970 retail fuel stations across Germany and Austria, established in partnership with Ara Infrastructure.

Future Perspective

The global landscape of energy demand continues to evolve, becoming increasingly complex. According to Shameek Konar, Partner and Head of Ara Energy, the key to effectively meeting this escalating demand lies in optimizing energy assets for longevity and resilience. With Ara Energy’s mission to invest in uncorrelated sectors, the fund aims to enhance grid capacity, cement energy security, and prolong the operational life of critical energy infrastructure. This robust capital influx will enable the firm to play a vital role in the broader energy transition, poised to address the urgent challenges of tomorrow’s energy market.

Threadmark acted as the global placement agent for the fund, while Davis Polk served as the legal counsel during the establishment of Ara Energy Fund I.

About Ara Partners

Founded in 2017, Ara Partners focuses on private equity and infrastructure investments centered around energy and industrial transitions. The firm’s portfolio extends across middle-market investments encompassing private equity, infrastructure, and energy strategies. By advancing market-ready decarbonization solutions, Ara strives to foster the businesses and infrastructures that significantly mitigate emissions along the traditional energy value chain. As of June 30, 2026, the firm manages approximately $10.6 billion in assets.

For further insights into Ara Partners, explore their official website at www.arapartners.com.

About HF Capital

HF Capital, LLC represents the investment interests of the Haslam family from Knoxville, Tennessee. It encompasses direct investments in operational companies alongside commitments to exceptional managers across a broad spectrum of asset classes and geographical landscapes. Founded in 1958 by James A. Haslam II, who established the Pilot Corporation, HF Capital also holds investments in numerous traditional and renewable energy companies, marking its pivotal partnership with Ara.