Arsenal Capital Partners has surpassed its fundraising targets across two funds that recently closed with a combined $5.4 billion in investor commitments with large institutional investor participation.
Among the investors in the new funds was the Oregon Investment Council, which oversees the Oregon Public Employees Retirement Fund, placed a combined $200 million across the funds late last year. Other investors include: The University of California’s Office of the Chief Investment Officer (UC Investments); California State Teachers’ Retirement System; California Public Employees’ Retirement Systems; affiliates of APG Asset Management; and Minnesota State Investment Board.
Arsenal Capital Partners VI closed with $4.3 billion in capital commitments and raised far in excess of its $2.4 billion predecessor fund. “We achieved a gratifying, high re-up rate from our existing institutional investors, who on average increased their commitments by 59% from the previous fund, and we are delighted to have attracted an exceptional group of new investors that further bolter our market-leading institution,” said Terry Mullen, managing partner of Arsenal, in a statement.
The $10 billion private equity firm offers two market-leading franchises in the industrials and healthcare sectors.
Fund VI will focus on investments in industrials and healthcare businesses with proven technologies and solutions positioned to deliver high performance and value-add to their customers.
Arsenal Capital Partners Growth closed at $1.1 billion for its inaugural fundraise, officials said.
The Growth Fund will execute a similar strategy to Fund VI in the same markets but pursues investments in next generation, emerging technology businesses poised to apply innovation to generate very high growth.
“We and our investors see exciting opportunities to invest in technology- and innovation-rich companies in the industrial and healthcare sectors,” said Jeff Kovach, managing partner of Arsenal. “Moreover, investors have acknowledged the depth of our domain and technical expertise that provides Arsenal the access, relevance, and credibility to compete and win in our target markets.”