AMG Announces It Has Acquired The Minority Equity Interest In Ara Partners Previously Held By Capital Constellation, An Investment Platform Managed By Wafra Inc., And Certain Of Its Affiliated Investment Vehicles; No Financial Terms Disclosed

Author: Benzinga Newsdesk | October 23, 2023 08:04am

AMG invests in Ara Partners, a specialized private markets manager focused on industrial decarbonization

Partnership enhances AMG's exposure to secular growth areas: private markets and sustainable investing

AMG partnership facilitates increase in Ara Partners' management equity ownership in the firm

Ara Partners to leverage AMG's strategic capabilities to enhance business development and growth initiatives

WEST PALM BEACH, Fla., Oct. 23, 2023 (GLOBE NEWSWIRE) -- AMG, a leading partner to independent investment management firms globally, today announced that it acquired the minority equity interest in Ara Partners previously held by Capital Constellation, an investment platform managed by Wafra Inc., and certain of its affiliated investment vehicles.

Ara Partners is a global private markets firm that invests in the transition to a lower-carbon economy, through investments in companies offering scalable technologies, products, or services that address critical issues of decarbonization across a range of essential industries. Founded by co-Managing Partners Charles Cherington and Troy Thacker, and with a senior management team averaging more than twenty years' experience, Ara Partners' industry, operating, and technical expertise enables collaboration with portfolio companies to bring decarbonization products and services to market efficiently. With approximately $5 billion in assets under management, Ara Partners has generated growth through strong investment performance as demand accelerates for industrial decarbonization solutions to achieve carbon emission reduction goals.

"Our partnership with Ara Partners broadens AMG's participation in private markets in a specialized, impactful area with significant growth potential, further diversifying our business," said Jay C. Horgen, President and Chief Executive Officer of AMG. "Given the global focus on a lower-carbon economy and energy transition, Ara Partners is well-positioned to benefit from accelerating client demand for industrial decarbonization investments, and AMG's strategic partnership solutions can catalyze the firm's next phase of development. AMG's distinctive approach continues to attract outstanding firms seeking to collaborate with a strategic partner that can magnify their long-term success. I am delighted to welcome Charles, Troy, and their partners to our Affiliate group."

"We are excited to move into our next phase of growth with AMG as our partner," said Mr. Cherington. "Through this partnership, we will be able to leverage AMG's broad range of proven capabilities to enhance our growth initiatives and build on our success, while preserving our entrepreneurial culture, investment independence, and operational autonomy."

"Through our partnership with AMG, Ara Partners' management team will increase and deepen its equity ownership in our firm, further enhancing our strong alignment with our clients," said Mr. Thacker. "AMG's unique partnership approach enables us to continue building an enduring, multi-generational firm, and continue investing with the goals of delivering superior outcomes for clients and making a positive impact in industrial decarbonization."

The terms of the transaction were not disclosed. Ara Partners' management team will continue to direct the firm's day-to-day operations.

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