Key Takeaways
- • Red Arts Capital raised $270M for its fund, closing oversubscribed and above its $225M target, according to a Business Wire press release dated May 2, 2023.
- • The Chicago-based firm invests in family-owned, middle-market supply chain and logistics companies, and is backed by investors including Prudential Financial, The University of Chicago's Office of Investments, and certain funds managed by Neuberger Berman.
- • The raise follows a $150M sale of Midwest Motors Express to Knight-Swift Transportation (NYSE: KNX) earlier in the firm's track record, and a series of 2022 acquisitions across packaging, warehousing, freight consolidation and third-party logistics.
- • Red Arts Capital Opportunity Fund I has completed M&A valued at nearly $200M across two portfolio companies as of Q1 2023, per the firm.
- • The firm plans to expand into aerospace, defense and manufacturing in 2023 and reports it has hired over 12 senior investment and operations executives in the past year.
Summary
Red Arts Capital, a Chicago-based private equity firm focused on the supply chain and logistics sector, has raised $270M to continue investing in middle-market supply chain companies, according to a Business Wire press release. The fund closed oversubscribed and above its $225M target. Its backers include Prudential Financial, Inc., The University of Chicago's Office of Investments, and certain funds managed by Neuberger Berman. Co-Founder and Managing Partner Chad Strader said the support would energize the firm's efforts to grow durable businesses in the supply chain sector, while fellow Co-Founder and Managing Partner Nicholas Antoine cited significant opportunity in the fragmented sector in which the firm invests.
The raise follows a active period for the firm. Red Arts began the year with a $150M sale of Midwest Motors Express to Knight-Swift Transportation (NYSE: KNX). In 2022 it orchestrated several acquisitions across supply chain sub-sectors, including Coregistics (packaging), Partners Warehouse and Flex Logistics (warehousing), Sunset Pacific Transportation (freight consolidation), and Radius Logistics (third-party logistics). As of Q1 2023, Red Arts Capital Opportunity Fund I had completed M&A valued at nearly $200M across two portfolio companies. The release notes that performance quoted represents past performance and does not guarantee future results.
The firm, founded in 2015 by Nick Antoine and Chad Strader, describes itself as a leading black-led investment firm and says it is 100% Black-owned. It reports having hired over 12 top investment and operations executives in the past year, and says women represent roughly 50% of the firm. Patricia Zollar, Managing Director at Neuberger Berman, said the firm had impressed the group with its team and advisor network. Looking ahead, Red Arts expects to expand into aerospace, defense and manufacturing in 2023. Acalyx Advisors acted as exclusive fundraising advisor, and Greenberg Traurig, LLP served as legal counsel.
The raise follows a active period for the firm. Red Arts began the year with a $150M sale of Midwest Motors Express to Knight-Swift Transportation (NYSE: KNX). In 2022 it orchestrated several acquisitions across supply chain sub-sectors, including Coregistics (packaging), Partners Warehouse and Flex Logistics (warehousing), Sunset Pacific Transportation (freight consolidation), and Radius Logistics (third-party logistics). As of Q1 2023, Red Arts Capital Opportunity Fund I had completed M&A valued at nearly $200M across two portfolio companies. The release notes that performance quoted represents past performance and does not guarantee future results.
The firm, founded in 2015 by Nick Antoine and Chad Strader, describes itself as a leading black-led investment firm and says it is 100% Black-owned. It reports having hired over 12 top investment and operations executives in the past year, and says women represent roughly 50% of the firm. Patricia Zollar, Managing Director at Neuberger Berman, said the firm had impressed the group with its team and advisor network. Looking ahead, Red Arts expects to expand into aerospace, defense and manufacturing in 2023. Acalyx Advisors acted as exclusive fundraising advisor, and Greenberg Traurig, LLP served as legal counsel.
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