Dealflow | September 27, 2021

Ara Partners fund secures $1.1 billion to decarbonize the industrial sector

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, September 27 — Ara Fund II will focus on buyouts and growth investment in companies in industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture.

Industry is responsible for one-third of all global greenhouse gas emissions. “Lowering carbon emissions in the industrial sector is an important piece of the global climate effort,” said Ara Partners’ Troy Thacker.

The Houston-based fund, which received commitments from pension and sovereign wealth funds as well as endowments and foundations, exceeded its initial target of $650 million. Ara Fund I, which raised $400 million last year, had a similar strategy.

Carbon Intensity

Ara Fund II’s five investments to date includes Polar Sapphire, which manufactures high-purity alumina, a critical input for LEDs, lithium-ion battery separators and other green technologies.

It also backed plastic recycling platform Aloxe, renewable energy developer Anesco, energy and industrial infrastructure asset manager px Group and Divert, which is recycling food waste into renewable natural gas (for context, see “Resilient Infrastructure Group acquires renewable natural gas facility from Equilibrium Capital).