Arcline Closes Fund III at $4.5 Billion

Arcline Investment Management has closed its third fund with total capital commitments of $4.5 billion.

Arcline makes control investments in companies with recurring revenue business models in the defense and aerospace; infrastructure services; industrial and medical technology; life sciences and specialty materials sectors. The firm’s targets will typically have from $10 million to $100 million of EBITDA and enterprise values up to $1 billion.

Arcline’s earlier fund, Arcline Capital Partners II LP, closed in January 2021 with $2.75 billion of capital commitments. The firm was founded in September 2018 and since inception has invested in 20 platform companies and completed 90 add-on acquisitions.

Recent investments by Arcline include the September 2022 acquisition of Kings III of America, a Texas-based provider of emergency monitoring equipment and services – installation, monitoring and maintenance – to building owners and property managers. The company’s services and products are present in elevators, on pool decks, in stairwells, in parking garages and parking lots, in greenbelts and parks, and in stadiums and arena locations.

In July 2022, Arcline formed Signia Aerospace to acquire International Mezzo Technologies, a Louisiana- headquartered manufacturer of microtube heat exchangers used in thermal management applications in the defense, aerospace, commercial, space and racing end markets.

The formation of Signia was also used by Arcline to consolidate its investments in Onboard Systems International, a Washington-based provider of cargo handling equipment for civil and military helicopters; Air Comm Corporation, a Colorado-based manufacturer of environmental control systems and thermal management systems; and Enviro Systems, an Oklahoma-based maker of environmental control systems used in aviation applications. Earlier this month, Signia Aerospace acquired Lifesaving Systems, a Florida-based supplier of helicopter and maritime rescue and survival equipment.

“We would like to thank our new and returning investors for their enthusiasm in backing the Arcline team,” said Arcline in a released statement. “Fund III 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.”

With the closing of Fund III, San Francisco and New York-based Arcline now has $8.9 billion in cumulative capital commitments.

Kirkland & Ellis provided legal services to Arcline for the raising of Fund III.

© 2023 Private Equity Professional | March 24, 2023