Two investment firms have recently launched separate funds aimed at tackling global climate and sustainability issues.
Ara Partners, a private equity firm specializing in industrial decarbonization investments, has closed its debut fund, Ara Fund I, LP, with approximately $400 million in capital commitments.
The Fund will invest in companies in North America and Europe that are poised to accelerate the decarbonization of the industrial economy. The Fund was backed by a group of institutional investors in North America, Europe, and Asia, including public pensions, sovereign wealth funds, endowments, foundations, and family offices.
The Fund builds on the team’s experience and insight into how the demands of the industrial sector can be met by low-carbon offerings. Current portfolio companies of the Fund include Puraglobe (a carbon-negative producer of high-specification synthetic lubricants), Transform Materials (a process technology provider for the low-carbon production of acetylene and high-purity hydrogen), Priority Power Management (an independent energy management services provider of renewable power and demand response solutions to industrial and commercial businesses), and Centric Infrastructure Group (an innovative local fiber and energy infrastructure company). The Fund has made two additional industrial growth investments that are not publicly disclosed at this time.
Atlantic-Pacific Capital served as the Fund’s exclusive global placement agent and Foley & Lardner, LLP provided legal counsel.
In a similar move, Domini Impact Investments LLC recently announced the launch of the Domini Sustainable Solutions Fund, a new mutual fund dedicated to investing in innovative, solution-oriented companies contributing solutions to global sustainability challenges. The Fund is available to individual and institutional investors.
The Domini Sustainable Solutions Fund is designed to help impact investors make a difference and meet their own personal financial goals through a global equity portfolio of companies that Domini believes can play an important role in addressing some of the world’s greatest social and environmental challenges. The Fund invests worldwide in public companies of any size, seeking investments that support one or more of its seven sustainability themes:
- Accelerate the transition to a low-carbon future
- Contribute to the development of sustainable communities
- Help ensure access to clean water
- Support sustainable food systems
- Promote access to health and well-being
- Broaden financial inclusion
- Bridge the digital divide
By investing in companies providing solution-oriented products and services aligned with these themes — from renewable energy systems and electric vehicles to breakthrough medical technologies, healthy and organic food, and lending for underserved communities — the Fund is designed to help create a more sustainable future and provide investors an opportunity to better align their portfolios with the United Nations’ Sustainable Development Goals (SDGs). By seeking investments that support the transition to a more sustainable economy, Domini also believes it can identify strong long-term investments.