Arcline Raises $2.75 Billion for Second Fund

Arcline Investment Management has closed its second fund, Arcline Capital Partners II LP, with total capital commitments of $2.75 billion. Arcline closed its first fund with $1.5 billion of committed capital in March 2019.

Arcline makes control investments in companies that have from $10 million to $100 million of EBITDA and enterprise values of up to $1 billion. Sectors of interest include defense and aerospace; infrastructure services; industrial and medical technology; life sciences and specialty materials.

“We would like to thank our new and returning investors for their enthusiasm in backing the Arcline team,” said Rajeev Amara, CEO of Arcline. “Fund II will continue to focus on opportunities where Arcline can create value by accelerating the growth of high-quality companies in partnership with talented business owners, industry executives and management teams.”

Arcline was founded in 2019 and since inception has invested in 8 platform companies and completed 29 add-on acquisitions. The firm’s platforms include:

  • American Elevator Group, a provider of maintenance, repair and modernization services to an installed base of commercial and residential elevators. American Elevator was formed by Arcline in 2020 to house its investments in American Elevator & Machine, D&D Elevator Maintenance, Jersey Elevator, Pride & Service Elevator, Kencor Elevator Systems, and Unitec Elevator.
  • Quantic, a manufacturer of electronics for next-generation defense and aerospace applications. Quantic was formed in January 2021 to house Arcline’s investments in TRM Microwave (January 2021), Ohmega Technologies (January 2021), and Evans Capacitor (November 2020).
  • Akron Biotechnology, a supplier of specialty materials used in cell and gene therapy. Akron was acquired from private owners in September 2019.
  • Integrated Polymer Solutions (IPS), a manufacturer of elastomeric components for defense, aerospace and medical applications. IPS was acquired from Industrial Growth Partners in July 2019.
  • Fairbanks Morse, an OEM and aftermarket provider of power systems for the U.S. Navy. Fairbanks Morse was carved-out from EnPro Industries in December 2019.
  • Glebar, an OEM and aftermarket provider of production equipment used in the manufacturing of interventional surgical devices. Glebar was acquired from private owners in June 2020.
  • Cooper Machinery Services, a provider of aftermarket parts and emissions reduction services used in natural gas transmission infrastructure. Cooper was acquired through the carve-out of the reciprocating compression division of GE-owned Baker Hughes in July 2019.
  • Pride Engineering, an OEM and aftermarket provider of production equipment used in the manufacturing of aluminum beverage cans. Pride was acquired from May River Capital in August 2019.

Arcline has more than 35 professionals and has offices in New York City and San Francisco.

© 2021 Private Equity Professional | February 5, 2021

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