Arsenal Capital Partners has completed fundraising for Arsenal Capital Fund III LP (“Fund III”) with $875 million of committed capital, exceeding its target of $750 million. The firm’s previous fund, Arsenal Capital Partners II LP, was raised in 2006 with $500 million of committed capital. Arsenal now has over $1.6 billion of committed capital under management. Arsenal has already completed four platform investments and deployed approximately $195 million of equity capital in Fund III.
“We are delighted to have surpassed our expectations for Fund III and achieved a 75% increase in committed capital from our last fund. We sincerely thank all our investors for their tremendous support,” said Terrence Mullen, Co-founder and Partner at Arsenal. “We are very gratified by the investors’ response, citing the institutional quality of our firm committed to the opportunities and needs of the lower middle market, our leading franchises in specialty industrials and healthcare, and track record of building high performance companies.”
Arsenal Capital Partners makes investments in middle-market specialty industrial, healthcare and financial services companies with $50 million to $250 million in enterprise value. The firm invests in niche industry sectors where it has prior experience and where its operating resources can help facilitate incremental growth and margin improvement. Industries of specific interest include: specialty & fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace & defense; process industry components and services; and financial services. Arsenal has offices in New York and Shanghai (www.arsenalcapital.com).
Fund III’s investor base is international in scope, with approximately half of the institutional investors from the U.S. and the balance from Europe and Asia. The investor base represents a diverse group of endowments and foundations, public and corporate pension plans, financial institutions and family offices, including PKA A/S, Northwestern Mutual Life Insurance, PPM America, Northeast Utilities Service Company Retirement Plan, KIRKBI A/S, Partners Capital, Unigestion, Storebrand, Purdue University, funds advised by Bowmark Capital and Cheyenne Capital Fund.
Forbes Private Capital Group served as placement agent for Fund III and Kirkland & Ellis served as legal counsel.
“Fund III is a testament to the talented and experienced team that we have built and honed over 13 years and our strong culture of teamwork and collaborative value creation. Our uncommon balance of investment, industry and operating talent, working in unison enables us to be a partner of choice with management teams who are seeking to achieve differentiated strategic positioning with enhanced capabilities in growth, technology and operations,” said Jeffrey Kovach, a Co-founder and Partner at Arsenal. “With offices in New York and Shanghai and a global team, our international experience and capabilities are a major differentiator in the marketplace. The Arsenal strategy and model continue to win in the market, as evidenced by the 57 investments we have completed since inception.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 4-3-13