Arsenal Capital Partners, a prominent private equity firm specializing in investments within the industrial growth and healthcare sectors, has announced the successful completion of fundraising for two new investment vehicles. The firm has garnered a total of $5.4 billion in capital commitments, demonstrating strong investor confidence and exceeding initial targets. This successful fundraise positions Arsenal Capital Partners Inc. for continued growth and expansion within its core sectors.
Arsenal Capital Partners VI LP (Fund VI), along with its associated parallel funds, closed at an impressive $4.3 billion. This figure significantly surpassed its initial target of $3.0 billion and exceeded the $2.4 billion raised by its predecessor fund, indicating substantial growth and investor appetite. Concurrently, Arsenal Capital Partners Growth LP (Growth Fund) reached its hard cap, closing at $1.1 billion. The Growth Fund also outperformed its initial $750 million target, highlighting investor enthusiasm for Arsenal’s growth-focused strategy.
Terry Mullen, Managing Partner at Arsenal Capital Partners Inc., expressed gratitude towards the firm’s investors, stating, “We are extremely grateful for the support from and relationships with our long-time investors.” He further noted the high re-up rate from existing institutional investors, who increased their commitments by an average of 59% compared to the previous fund. Mullen also welcomed the addition of “an exceptional group of new investors,” emphasizing their contribution to strengthening Arsenal’s institutional foundation.
With over two decades of operation, Arsenal Capital Partners Inc. has established itself as a leading private equity institution. The firm’s success is built upon its specialized expertise in the industrial and healthcare sectors. Within these key areas, Arsenal focuses on developing high-growth companies that are rich in technology and innovation and hold strategic importance within their respective markets. Arsenal’s integrated team, comprising over 85 professionals and 55 senior advisors, combines diverse expertise in investment, industry operations, and technical domains. This blend of skills enables the firm to deliver differentiated strategic insights and leverage expert capabilities to drive value creation within its portfolio companies.
Jeff Kovach, also a Managing Partner at Arsenal Capital Partners Inc., highlighted the significance of the fundraises, stating, “The success of these fundraises reflects the strength of our market-leading franchises and our track record of building strategically valuable businesses.” He emphasized the attractive investment landscape within the technology and innovation-driven segments of the industrial and healthcare sectors. Kovach further acknowledged that investors recognize Arsenal’s deep sector-specific and technical expertise, which provides the firm with a competitive edge in sourcing and securing deals within its target markets.
Fund VI will maintain Arsenal Capital Partners Inc.’s established investment strategy, focusing on industrial and healthcare businesses with proven technologies and solutions. These companies are expected to deliver high performance and substantial value to their customer base. The Growth Fund, while operating within the same core sectors, will target next-generation, emerging technology businesses. This fund will concentrate on companies poised for rapid growth through the application of innovative technologies. Both Fund VI and the Growth Fund will leverage Arsenal’s robust company-building capabilities to accelerate organic growth and strategically pursue acquisitions. These strategic moves aim to expand portfolio companies’ offerings and solidify their leadership positions in their respective markets.
Patricia Grad, Partner and Head of Investor Relations at Arsenal Capital Partners Inc., expressed appreciation for the global investor base that supported the firm’s fundraising efforts. She highlighted the collaborative dialogue with investors in shaping these investment opportunities, particularly the inaugural Growth Fund. Grad concluded by stating the firm’s commitment to “deepening and strengthening our partnerships with our investors for years to come.”
The investor base for both Fund VI and the Growth Fund includes a diverse range of leading institutions. These include public and corporate pension plans, family offices, endowments, foundations, and financial institutions. Prominent 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 Inc., Fund VI, and the Growth Fund throughout the fundraising process.
About Arsenal Capital Partners
Arsenal Capital Partners Inc. is a leading private equity firm dedicated to investing in industrial growth and healthcare companies. Founded in 2000, Arsenal has successfully raised over $10 billion in institutional equity investment funds. The firm has completed more than 250 platform and add-on acquisitions and achieved over 30 realizations. Arsenal collaborates closely with management teams to develop strategically important companies characterized by leading market positions, high growth trajectories, and substantial value-add. For more information, please visit www.arsenalcapital.com.
Contact:
Jackie Schofield at Prosek Partners [email protected]
SOURCE Arsenal Capital Partners
