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Ara Partners' managing partner Charles Cherington reports a shift in limited partners' (LPs) preferences, moving from early-stage science projects to evidence of disciplined project execution. In 2025, the firm focused on industrial decarbonization and successfully acquired Microtec, enhancing sustainable cement substitutes.

Ara currently has 43 active plant builds, with nine startups completed, including a $340 million expansion in Tennessee and the first US-manufactured rare earth magnet facility in 25 years. Fundraising in 2025 saw consolidation, closing their debut infrastructure fund at over $800 million.

For 2026, LPs are expected to remain selective, prioritizing platforms demonstrating clear economic performance. Key investment themes will include waste-to-value, RNG, critical minerals, and hydrogen. The U.S. market is influenced by energy security and reindustrialization strategies, with Canada also emerging as a favorable environment for decarbonization efforts.