Arsenal Has Quick and Oversubscribed Fund V Close

Arsenal Capital Partners has completed fundraising for Arsenal Capital Fund V LP with an oversubscribed $2.3 billion of committed capital. The firm’s previous fund closed in October 2016 with $1.3 billion of committed capital.

Fund V’s investor base is international in scope, with 58% of the capital coming from the United States, 33% from Europe, and the balance from the Middle East, Asia, and Australasia. Limited partners in the new fund include public and corporate pension plans, family offices, endowments and foundations, and financial institutions, including The Regents of the University of California, California State Teachers’ Retirement System, affiliates of APG Asset Management, Minnesota State Board of Investment, and PKA AIP, the alternative investment arm of the Danish pension fund PKA.

“We are extremely grateful for and humbled by the long-standing support of our world-class investors who have been foundational partners in building Arsenal into a leading private equity firm over the past 19 years,” said Terry Mullen, co-founder and co-managing partner of Arsenal. “We are delighted that through this recent fundraise, we also were able to initiate new relationships with a number of blue-chip investors, diversifying our global investor base and fortifying our institution for years to come.”

Arsenal makes control equity investments of $50 million to $300 million in middle-market specialty industrial and healthcare companies that have at least $10 million of EBITDA. Since its founding in 2000, Arsenal has raised investment funds totaling $5.3 billion, completed 41 platform investments, and achieved 30 realizations.

“The demand for Fund V is a testament to our leading franchises in specialty industrials and healthcare and our deep and experienced team,” said Jeff Kovach, co-founder and co-managing partner of Arsenal. “By leveraging our extensive expertise and our model of integrating investment, industry, and operating talent, Arsenal’s ‘Strategic Company Building’ strategy consistently produces high-growth, technology- and innovation-rich companies that generate superior returns for our investors.”

“We are extremely pleased by the overwhelming level of enthusiasm and demand for Fund V,” said Patricia Grad, a senior managing director and head of investor relations for Arsenal. “We were honored to have a 94% re-up rate from existing investors and were heavily over-subscribed, enabling us to complete the fundraise in less than four months after launch.”

Arsenal Capital Partners is headquartered in New York (www.arsenalcapital.com).

Kirkland & Ellis (www.kirkland.com) provided legal services for this fundraise.

© 2019 Private Equity Professional | April 25, 2019

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