Ara Partners, a global investment firm dedicated to decarbonizing the industrial economy, announced that it has raised over $800 million for its Ara Infrastructure strategy, including its debut Fund, Ara Infrastructure Fund I, and associated co-investment vehicles.
This fund exceeded its target of $500 million, drawing strong support from Ara’s existing investor base and a diverse set of new institutional investors, including pension funds, insurance companies, sovereign wealth funds, endowments, and foundations from North America, Europe, and the Asia-Pacific region.
Ara Infrastructure is headed by industry veterans George Yong and Teresa O’Flynn. The strategy targets mid-market infrastructure, focusing on developing new and repurposing high-quality legacy assets for the low-carbon industrial economy. Since launching the strategy in 2022, Ara Infrastructure has completed three investments, with a fourth commitment expected shortly. The Fund now owns 12 operational assets across North America and Europe.
Some of the company’s portfolio companies include:
1.) Lincoln, a leading terminal services provider with a strong footprint in the Southeastern and Mid-Atlantic U.S.
2.) USD Clean Fuels, a developer of renewable fuel feedstock and biofuel logistics infrastructure on the U.S. West Coast
3.) Natural World Products, a leading organics recycler in Northern Ireland and the Republic of Ireland, manages over 330,000 tons of household waste annually
Placement agent/counsel: Rede Partners acted as placement agent and Debevoise & Plimpton served as legal counsel in forming Ara Infrastructure Fund I.
KEY QUOTES:
“We are incredibly proud of this milestone and grateful for the robust support from our investors. This Fund enables us to pursue a generational investment opportunity across Europe and North America, characterized by increasing energy and industrial demand, a move towards decentralized energy systems, as well as the need to ensure an economic path toward a lower carbon economy. We are focused on building high-value decarbonization assets that future-proof businesses for the modern economy and support the energy transition.”
Teresa O’Flynn, Partner and Co-Head of Infrastructure at Ara Partners
“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.”
George Yong, Partner and Co-Head of Infrastructure
