Specialty Materials

Ara Infrastructure Fund I is an infrastructure fund managed by Ara Partners and located in Houston, Texas. Ara Partners plans to acquire majority interests in 8 to 10 companies generating cash flow but not to its full potential. As of March 2024, it has acquired majority stakes in two companies developing biofuels rail terminals: Lincoln Terminal Holdings in Greenville, South Carolina; and USD Clean Fuels in Houston. In May 2025, the fund reached final close with US$800 million.

Arcline Capital Partners IV is the fourth flagship vehicle raised by Arcline Investment Management, closing at $6 billion in October 2025 after a rapid sub-10-month fundraising cycle. The fund significantly exceeded its initial $5 billion target, reflecting strong institutional demand for Arcline’s consistent, industrial-focused investment strategy. Legal counsel for the fundraise was provided by Kirkland & Ellis. The vehicle maintains Arcline’s emphasis on technology-led industrial platforms, with investments targeted across a diverse set of sectors including defense, aerospace, industrial technology, life sciences, energy transition, and specialty materials. These industries align with the firm's long-standing belief in secular tailwinds and thematic value creation. Fund IV focuses on acquiring or partnering with middle-market companies in North America, particularly those with enterprise values of up to $3 billion and annual revenues up to $1 billion. Arcline’s hands-on, operationally intensive approach is designed to accelerate growth through digital enablement, carve-out execution, and management team collaboration. The fund is positioned to benefit from long-term macroeconomic and geopolitical trends such as supply chain reshoring, defense modernization, and industrial decarbonization. Arcline seeks to leverage these dynamics through platform consolidation, carve-outs from larger corporations, and investment in companies where technology transformation is a value lever.

Compass Group Fund III has closed at a hard cap of $408 million, representing the firm’s second fundraising effort in the past two years. The fund focuses on thematic research and investment in the lower middle market, specifically targeting subsectors within niche manufacturing & distribution and business & consumer services industries. The geographical focus of the fund is the Mid-America “Between the Mountain Ranges,” with a strategic emphasis on the Midwestern region. The fund seeks to invest in historically successful entrepreneur and family-owned companies that exhibit characteristics such as EBITDA between $2 million and $15 million, enterprise values of $20 million to $200 million, and strong margin and cash flow generation. Compass Group aims to provide long-term capital and strategic support to small-to-medium sized private companies with revenues between $20-$100 million, typically investing $10-$30 million in control positions. The firm prioritizes partnering with businesses that have reached an inflection point for growth and are seeking continued participation and partnership, especially those without prior institutional capital. Additionally, Compass Group looks for niche markets with $100M+ potential that are highly fragmented with no clear leader or category disruption, further demonstrating the fund’s strategic focus on specific sectors and types of businesses.

The Decarbonization Partners Fund I focuses on investing in late-stage venture capital and growth private equity for next-generation companies that support the acceleration of decarbonization and the transition to a net-zero economy. The fund has attracted a diverse set of over 30 institutional investors representing 18 countries, including public and private pension funds, sovereign wealth funds, insurance companies, and corporates and family offices across North America, Europe, and Asia Pacific. The diversity and depth of the investor base reflect the global nature of the opportunity around climate investing, directly aligning with Decarbonization Partners’ global focus. The Fund’s target investments include companies that drive intentional, material, and measurable decarbonization outcomes. It invests in companies with de-risked technologies that are ready to scale and can benefit from BlackRock and Temasek’s complementary platforms and deep access. The Fund’s investments span several innovative decarbonization technologies, including sustainable materials, clean hydrogen, science-based carbon management services, low-emissions battery recycling, EV fleet management, and thermal energy storage for industrial applications. The partnership aims to invest in companies that provide solutions and technologies to help accelerate global efforts to achieve a net-zero global economy by 2050. The sectors targeted for investment include Carbon Capture, Storage and Utilization, Bio and Low Carbon Products, Next Generation Energy, Advanced Mobility, Carbon Management Services, and Digital Transformation. The team has built a robust pipeline of proprietary deal flow and intends to continue executing on this in the coming months. The Decarbonization Partners team, which has grown to over 25 members, includes experienced venture capital and growth equity investment and portfolio management professionals across offices in New York, San Francisco, Singapore, London, Paris, and Houston. The team was intentionally constructed to provide portfolio companies with trusted value-add partners who bring significant technical and operational experience to the table.

New Mountain Partners VII is a buyout fund managed by New Mountain Capital and located in New York. The fund will acquire controlling stakes in companies valued between $100 million and $1 billion, typically investing between $100 million and $500 million per transaction​. New Mountain Capital targets sectors characterized by sustainable and noncyclical growth, which they refer to as "defensive growth industries." These include life sciences, advanced materials, healthcare technologies, infrastructure services, and digital transformation services, among others. As of APril 2024, the fund has raised US$12.4 billion, above its target of US$12 billion. The fund expects to do around 20 investments.

The fund, SK Capital Partners VI, focuses on transformative investments in the specialty materials, ingredients, and life sciences industries. The fund exceeded its target at $2.95 billion, showcasing the strong support from investors for the Firm’s private investment strategy. SK Capital is well-capitalized and well-positioned to provide capital solutions to entrepreneurs, families, and corporates across all transaction sizes through a unique style of transformative control investing. The fund aims to partner with diverse and experienced private equity investors, deepening relationships with long-standing partners and diversifying the investor base globally. SK Capital seeks to build resilient, sustainable, and growing businesses that create substantial long-term value in the sectors it invests in. With a portfolio of businesses generating revenues of approximately $14 billion annually, employing more than 25,000 people globally, and operating in over 30 countries, SK Capital has approximately $7.9 billion in assets under management. The firm aims to utilize its industry, operating, and investment experience to transform businesses into higher performing organizations with improved strategic positioning, growth, profitability, and lower operating risk.