ARA PARTNERS

Thesis

Ara Partners is a global private equity and infrastructure firm founded in 2017, specializing in industrial decarbonization and the transition to a lower-carbon economy. Their core investment thesis is to identify and scale companies offering technological solutions to reduce carbon emissions in hard-to-abate industrial sectors. They target Growth and Private Equity stage businesses in chemicals, materials, and energy that can achieve cost-parity with incumbents. Their strategy is control-oriented, focusing on acquiring and scaling businesses to improve energy, resource, and process efficiency. Key sectors include industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture. The firm also has an infrastructure strategy focused on mid-market assets for the low-carbon industrial economy, including low-carbon molecule production, waste-to-X, and decarbonization solutions for infrastructure. As of December 31, 2024, Ara Partners had approximately $6.2 billion in AUM. Their third private equity fund closed in December 2023 with over $2.8 billion, and their infrastructure fund raised over $800 million. They typically invest $50 million to $200 million of equity, with a check size ranging from $10 million to $100 million.

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