Arsenal Capital Partners, a prominent private equity firm specializing in industrial and healthcare sector investments, has announced the successful closing of two oversubscribed funds, amassing a total of $5.4 billion in capital commitments. This significant achievement underscores investor confidence in Arsenal’s focused investment strategy and operational expertise.
Fund VI, the firm’s latest flagship fund, closed at $4.3 billion, significantly surpassing its initial $3.0 billion target and outstripping its $2.4 billion predecessor fund. Alongside Fund VI, Arsenal’s inaugural Growth Fund reached its hard cap, securing $1.1 billion in commitments, exceeding its $750 million target. The strong investor interest in both funds highlights Arsenal Capital Partners’ robust track record and compelling vision for future growth.
Terry Mullen, Managing Partner at Arsenal Capital Partners, expressed gratitude for the continued support from existing and new investors. “We are extremely grateful for the support from and relationships with our long-time investors,” Mullen stated. He noted a high re-up rate from existing institutional investors, with an average commitment increase of 59% compared to the previous fund. The firm also welcomed a distinguished group of new investors, further strengthening its institutional base.
Arsenal Capital Partners has cultivated a leading position in the private equity landscape over its 22-year history, focusing on building market-leading franchises within the industrial and healthcare sectors. The firm’s strategy centers on creating high-growth companies enriched with technology and innovation, strategically vital to their respective markets. Arsenal’s team, comprising over 85 professionals and 55 senior advisors, integrates specialized investment, industry, and operational knowledge to deliver differentiated strategic insights and leverage diverse expertise.
Jeff Kovach, Managing Partner at Arsenal Capital Partners, highlighted the fundraises’ success as a reflection of the firm’s strong franchises and history of building strategically valuable businesses. “The success of these fundraises reflects the strength of our market-leading franchises and our track record of building strategically valuable businesses,” Kovach commented. He emphasized the attractive investment opportunities in technology-driven and innovative companies within the industrial and healthcare sectors. Kovach also acknowledged investors’ recognition of Arsenal’s deep sector expertise, which provides the firm with a competitive edge in its target markets.
Fund VI will concentrate on investments in established industrial and healthcare businesses possessing proven technologies and solutions that deliver significant value to customers. The Growth Fund will adopt a similar sector focus but will target investments in next-generation, emerging technology businesses poised for high growth through innovation. Arsenal Capital Partners intends to leverage its company-building capabilities within both funds to drive substantial organic growth and facilitate strategic acquisitions, enhancing portfolio companies’ offerings and market leadership.
Patricia Grad, Partner and Head of Investor Relations at Arsenal Capital Partners, acknowledged the global investor base that supported the funds. “We are grateful for this global group of institutions and individuals who have supported our firm and greatly appreciate the collaborative dialogue that we had with them as we crafted these investment opportunities, particularly our debut Growth Fund,” Grad stated. She expressed enthusiasm for strengthening investor partnerships in the future.
The investor base for Fund VI and the Growth Fund includes prominent public and corporate pension plans, family offices, endowments, foundations, and financial institutions. Notable investors include The University of California’s Office of the Chief Investment Officer (UC Investments), California State Teachers’ Retirement System, California Public Employees’ Retirement Systems, affiliates of APG Asset Management, The Oregon Public Employees Retirement Fund, affiliates of IIP A/S, and Minnesota State Investment Board.
Kirkland & Ellis LLP provided legal counsel to Arsenal Capital Partners, Fund VI, and the Growth Fund.
About Arsenal Capital Partners
Arsenal Capital Partners is a leading private equity firm that specializes in investments in industrial growth and healthcare companies. Founded in 2000, Arsenal has accumulated over $10 billion in institutional equity investment funds, completed more than 250 platform and add-on acquisitions, and achieved over 30 realizations. The firm collaborates with management teams to develop strategically important companies characterized by leading market positions, robust growth, and high value creation. For more information, please visit Arsenal Capital Partners’ official website.
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