Global investment firm Ara Partners has exceeded the fundraising target for its debut infrastructure fund, securing over $800m (€708.7m) for its infrastructure strategy.
The inaugural Ara Infrastructure Fund I fund surpassed its target of $500m target as it secured capital commitments from Ara’s existing investor base and new institutional investors including pension funds, insurers, sovereign wealth funds, endowments and foundations.
In total, Ara said it raised over $800m for its infrastructure strategy, which includes Fund I and associated co-investment vehicles, from North America, Europe and the Asia-Pacific region investors.
The strategy targets mid-market infrastructure with a focus on “developing new and re-purposing high-quality legacy assets for the low carbon industrial economy,” Ara said.
Launched in 2022, Ara’s infrastructure strategy has made three investments with a fourth expected soon.
The manager said Fund I currently holds 12 assets across North America and Europe, including US terminal services provider Lincoln; US renewable fuel infrastructure company USD Clean Fuels; and Natural World Products, an organics recycler in Northern Ireland and the Republic of Ireland.
Teresa O’Flynn, partner and co-head of infrastructure at Ara Partners, said: ”This fund enables us to pursue a generational investment opportunity across Europe and North America, characterised by increasing energy and industrial demand, a move towards decentralised energy systems, as well as the need to ensure an economic path toward a lower carbon economy.
“We are focused on building high-value decarbonisation assets that future-proof businesses for the modern economy and support the energy transition.”
George Yong, partner and co-head of infrastructure at Ara, said: ”We are committed to delivering attractive risk-adjusted returns with classic infrastructure characteristics to our investors. Ara’s builder capabilities and DNA ideally position us to navigate the disjointed, yet opportunity-rich, world of middle-market sustainable infrastructure.
“Companies in our target sectors seek more than just a capital provider; we believe our in-house operational capabilities make us a value-add partner of choice. We look forward to supporting exceptional teams and companies across these sectors.”
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