Liberty Mutual Insurance’s investment arm, Liberty Mutual Investments, has partnered with industrial decarbonization-focused private equity firm Ara Partners to launch a new cross-platform investment collaboration targeting energy and infrastructure assets.

The partnership includes a strategic capital commitment from Liberty Mutual Investments to support Ara’s Energy and Infrastructure platforms, alongside joint collaboration on future investment opportunities across both firms’ mandates.

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Backing Decarbonization Across the Energy Value Chain

Founded in 2017, Ara Partners focuses on acquiring and scaling businesses and infrastructure assets aimed at decarbonizing heavy industry and accelerating the transition to net zero. The firm targets investments capable of delivering greenhouse gas emissions reductions of 60% or more at the product, service, or asset level compared to traditional market incumbents.

Under the new agreement, Liberty Mutual Investments will serve as an anchor investor in Ara Energy Fund I, Ara’s energy-focused strategy launched in 2024. The fund seeks to acquire and optimize energy businesses and assets across North America and Europe, while pursuing economically viable decarbonization opportunities along the value chain.

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Expanding Collaboration Across Key Infrastructure Assets

Beyond Ara Energy Fund I, the firms will collaborate on a range of current and prospective investments. Areas of focus include carbon capture projects at ethanol plants, the JET fuel retail network operating in Germany and Austria, Southern U.S.-based broadband provider Centric Fiber, and natural-gas-fired combined-cycle power plants in the Northeastern United States.

The partnership reflects growing investor interest in energy and infrastructure platforms that balance rising global energy demand with emissions reduction strategies. By combining Ara’s operational “builder” model with Liberty Mutual Investments’ broad reach across industrial, real estate, and infrastructure ecosystems, the firms aim to unlock long-term value while advancing lower-carbon energy solutions.

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