money moves

Houston energy tech PE group raises $3B third fund

Ara Partners has announced the closing of its third fund. Photo via Getty Images

A Houston-based private equity firm that focuses on industrial decarbonization investments has closed its latest fund.

Ara Partners has secured over $3 billion of new capital commitments for its Ara Fund III, closing $2.8 billion of limited partner commitments, which represents an oversubscription of its $2 billion initial target.

"We are grateful for the extraordinary interest in Fund III demonstrated by Ara's increasingly global, blue-chip investor base," Charles Cherington, managing partner of Ara, says in a news release. "The strong support from new and existing investors, is a testament to their confidence in our talented team, our investment strategy, and the compelling opportunities in the industrial decarbonization sector."

The third fund's institutional investors includes pension funds, insurance companies, sovereign wealth funds, endowments, and foundations from around the world. Ara Fund III will continue the firm's mission of investing in and buying out decarbonization-aligned industrial companies, specifically targeting ones headquartered in the United States, Canada, and Europe.

"The growing, global presence of Ara's platform and portfolio directly reflects the industrial economy's continued demand for the technological innovation and infrastructure needed to decarbonize," Troy Thacker, managing partner of Ara, says in the release. "The support we have received for Fund III will enable the Ara team to continue investing in high-growth companies globally that are positioned to build value while achieving positive environmental impacts."

The newly closed fund has already made four investments:

  • Vacuumschmelze, a global producer of advanced magnetic materials and rare earth permanent magnets
  • Genera, a sustainable pulp and packaging producer
  • CFP Energy, a provider of market-facing solutions in environmental and green energy products to industrial customers across Europe
  • CycleØ, a fully integrated developer of distributed biomethane facilities

Founded by Cherington and Thacker in 2017, Ara has around $5.6 billion in assets under management. It's previous fund closed in September 2021 at an oversubscribed $1.1 billion.

Trending News

A View From HETI

Simon M. King, a Rice University sophomore, served as the first author on a recent study of a new process for recycling lithium-ion batteries. Photo courtesy Rice

Rice University researchers have uncovered a more energy-efficient and faster way to recycle critical minerals from used lithium-ion batteries.

Traditional methods rely on high heat, long processing times and harsh chemicals to recover a small fraction of critical materials from batteries used in everything from smartphones to electric vehicles. However, the team from Rice's Department of Materials Science and Nanoengineering developed a process that uses a water-based solution containing amino chlorides to extract more metals in less time

The team published the findings in a recent edition of the scientific journal Small.

Simon King, a sophomore studying chemical and biomolecular engineering who completed this work as a summer research fellow at the Rice Advanced Materials Institute, served as first author of the study. He worked with corresponding authors Pulickel Ajayan, the Benjamin M. and Mary Greenwood Anderson Professor of Engineering, and Sohini Bhattacharyya, a research scientist in Ajayan’s lab.

By using a hydroxylammonium chloride (HACI) solution, the team achieved roughly 65 percent extraction of key battery metals in just one minute at room temperature, according to the study. The efficiencies grew to roughly 75 percent for several metals under longer processing times.

“We were surprised by just how fast the reaction occurs, especially without the involvement of high temperatures,” King said in a news release. “Within the first minute, we’re already seeing the majority of the metal extraction take place.”

By not requiring high temperatures or long reaction times, Rice predicts the process could have a major impact on cost and the environmental impact of lithium battery recycling. Additionally, the water-based HACI solution makes waste handling easier and lowers certain environmental risks.

In addition to extracting the materials, the team went on to demonstrate that the recovered metals could be recycled and reprocessed into new battery materials.

“A big advantage of this system is that it works under relatively mild conditions,” Ajayan added in the release. “That opens the door to more sustainable and scalable recycling technologies.”

Trending News