Ara Partners Targets $650 Million for Second Fund

Ara Partners, a private-equity firm focused on companies that contribute to a low carbon economy, is pitching its second fund less than a year after raising $400 million for its debut vehicle.

Ara Partners’ latest fund is targeting $650 million and expects to hold a first close by the end of March, according to people familiar with the fundraising. The fund is expected to collect capital in excess of its target and hasn’t yet set a hard cap, two of the sources said.

Ara Partners is a global private equity firm decarbonizing the building blocks of the economy in immediate and tangible ways. Most investments aimed at combating the climate crisis target reimagining the electric power generation sector. At Ara Partners, private equity investments focus on the broader industrial economy, which contributes the majority of global carbon emissions, but is often overlooked. These areas are ripe for decarbonization and represent multi-decade investment opportunities.