Arsenal Capital Partners said April 25 that it closed its fifth fund on $2.36 billion. The firm’s last fund raised $1.3 billion. Arsenal, of New York, targets specialty industrials and healthcare platforms between $100 million and $500 million of enterprise value.
Arsenal Capital Partners Closes Fund V at $2.36 Billion
Leading, Highly Specialized Firm Focuses on Specialty Industrials and Healthcare
NEW YORK, April 25, 2019 – Arsenal Capital Partners (“Arsenal”), a leading specialized private equity firm focused on middle-market specialty industrials and healthcare companies, announced today that it completed fundraising for Arsenal Capital Fund V LP (together with its parallel funds, “Fund V”) with $2.36 billion of committed capital. The firm’s previous fund closed in 2016 with $1.30 billion of committed capital.
Commenting on the firm’s fundraising success, Terry Mullen, Co-Founder and Co-Managing Partner of Arsenal, said, “We are extremely grateful for and humbled by the long-standing support of our world-class investors who have been foundational partners in building Arsenal into a leading private equity firm over the past 19 years. We are delighted that through this recent fundraise, we also were able to initiate new relationships with a number of blue-chip investors, diversifying our global investor base and fortifying our institution for years to come.”
Fund V will be a continuation of the strategy employed by Arsenal’s previous funds, investing in specialty industrials and healthcare platforms between $100 million and $500 million of enterprise value. In each platform, Arsenal will execute value creation initiatives focused on achieving high organic growth and completing a number of accretive acquisitions to assemble broader value-add solutions and grow market positions.
Jeff Kovach, Co-Founder and Co-Managing Partner of Arsenal, said, “The demand for Fund V is a testament to our leading franchises in specialty industrials and healthcare and our deep and experienced team. By leveraging our extensive expertise and our model of integrating investment, industry, and operating talent, Arsenal’s ‘Strategic Company Building’ strategy consistently produces high-growth, technology- and innovation-rich companies that generate superior returns for our investors.”
Patricia Grad, Senior Managing Director and Head of Investor Relations of Arsenal, added, “We are extremely pleased by the overwhelming level of enthusiasm and demand for Fund V. We were honored to have a 94% re-up rate from existing investors and were heavily over-subscribed, enabling us to complete the fundraise in less than four months after launch.”
Fund V’s investor base is international in scope, with 58% of the capital coming from the United States, 33% from Europe, and the balance from the Middle East, Asia, and Australasia. The investor base is comprised of leading public and corporate pension plans, family offices, endowments and foundations, and financial institutions, including The Regents of the University of California, California State Teachers’ Retirement System, affiliates of APG Asset Management, Minnesota State Board of Investment, and PKA AIP A/S.
Kirkland & Ellis LLP served as legal counsel for Arsenal and Fund V.
About Arsenal Capital Partners
Arsenal is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of $5.3 billion, completed 41 platform investments, and achieved 30 realizations. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience and seeks companies typically in the range of $100 million to $500 million of initial enterprise value. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. For more information, visitwww.arsenalcapital.com.