Arsenal’s Fourth Fund Closes at Hard Cap
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Arsenal’s Fourth Fund Closes at Hard Cap

arsenal-nf5Arsenal Capital Partners has held a final close of Arsenal Capital Fund IV LP at its $1.3 billion hard cap. The firm’s previous fund, Arsenal Capital Partners III LP, was raised in 2012 with $875 million of committed capital.

Arsenal reports that the new fund’s investor base is international in scope with approximately 60% of the institutional capital coming from the United States and the balance from Europe and Asia.  Limited partners include endowments and foundations, public and corporate pension plans, financial institutions and family offices.

jeffrey-kovach-nf1In a confirmation that the earlier funds are doing well, over 85% of existing institutional investors re-upped in Fund IV including The Regents of the University of California; Northwestern Mutual; PPM America; The Eli and Edythe Broad Foundation; PKA AIP; Pictet Alternative Advisors; SAMpension; and Unigestion. New institutional investors include CalSTRS, PensionDanmark, and Sentry Insurance. “The Arsenal high-growth, buy and build strategy and model continue to win in the market, as evidenced by the 34 platform investments and 21 realizations completed since inception, generating excellent returns for our investors,” said Jeffrey Kovach, Co-founder and Partner at Arsenal.

Arsenal invests in middle-market specialty industrial and healthcare companies that have $50 million to $250 million in enterprise value.  Industries of specific interest include specialty and fine chemicals; segments of healthcare; transportation and logistics; power generation; aerospace and defense; and process industry components and services. The firm has offices in New York and Shanghai (www.arsenalcapital.com).

bill-farrell-nf1“Arsenal’s leading market positions in technology-rich industrials, such as specialty chemicals and specialty materials, and technology-enabled business services to healthcare resonated with existing Arsenal investors and attracted a high quality group of new investors to Fund IV,” said Bill Farrell, Head of Investor Relations for Arsenal.

Since its founding in 2000, Arsenal has now raised a total of $2.975 billion in capital. “The demand for Fund IV is a testament to the talented and experienced team of 33 professionals that we have built and honed over 16 years, and our strong culture of teamwork and collaborative value creation,” added Mr. Kovach. “Our uncommon balance of investment, industry and operating talent, working in unison, enables us to be a partner of choice with management teams seeking to achieve differentiated strategic positioning with enhanced capabilities in growth, technology and operations.”

terrence-mullen-nf1“We are delighted to have received the support of such a terrific group of leading global institutional investors,” said Terrence Mullen, Co-founder and Partner at Arsenal. “We are thankful for the wonderful long-standing commitment of our existing investors and for the trust new investors placed in our team and investment strategy. We are very gratified by the investors’ strong vote of confidence in the institutional quality of our firm, our leading franchises in specialty industrials and healthcare, and our track record of building high growth, high value-added companies.”

Kirkland & Ellis (www.kirkland.com) provided legal services to Arsenal on this fundraise.

© 2016 Private Equity Professional • 10-14-16

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