Climate-Focused PE Firm Ara Gathers $2.8 Billion for Third Fund

Ara Partners, a private equity firm aimed at cutting industrial carbon emissions, gathered $2.8 billion in commitments for its latest fund as it benefited from demand for climate-focused investing.

Ara Fund III closed with more than $3 billion of commitments, including co-investments, the firm said Wednesday in a statement. The fund’s limited partners include Los Angeles County Employees Retirement Association and Sweden pension fund AP4, according to pension fund documents.

Fundraising began in the fourth quarter of last year with a $2 billion target.

Ara makes buyout and growth investments in industrial companies with the goal of helping ...