The Chicago-based firm, which invests in family-owned, middle-market supply chain and logistics companies, closes fund oversubscribed.
Red Arts Capital, a leading black-led investment firm in the supply chain and logistics sector, raised $270M to continue its investment strategy supporting middle-market supply chain companies with significant growth potential. The firm’s fund closed oversubscribed and above its target of $225M and is backed by notable private equity investors and LPs including Prudential Financial, Inc., The University of Chicago’s Office of Investments, and certain funds managed by Neuberger Berman.
“The strong support from our investment partners will energize our efforts to help grow durable businesses in the supply chain sector,” said Co-Founder and Managing Partner Chad Strader.
“We continue to see significant opportunity in the fragmented sector in which we invest and are grateful for the confidence our investors continue to place in our partnership,” added Co-Founder and Managing Partner Nicholas Antoine.
The firm's latest fundraising caps a lucrative year that began with a $150M sale of Midwest Motors Express to North American trucking titan, Knight-Swift Transportation (NYSE: KNX).* The Chicago-based company continued to stay busy in 2022, orchestrating several acquisitions across various supply chain industry 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 has already completed mergers and acquisitions valued at nearly $200M across two of the fund’s portfolio companies.
“At the University of Chicago, we believe in building enduring partnerships that stand the test of time. That's why we seek strong alignment, commitment, and a partnership mindset when choosing new partners. Red Arts Capital ticked all the boxes with their determination, grit, and investment success." said Joanna Rupp.
Red Arts has seen tremendous expansion in the company’s ranks, with diversity being a key pillar of growth. In the last year, the firm has hired over 12 top investment and operations executives. A standout within the private equity industry, women represent ~50% of the firm.
“We have been thoroughly impressed with the Red Arts team, as well as the extensive network and group of advisors they have assembled to focus on niche supply chain and logistics investments,” said Patricia Zollar, Managing Director at Neuberger Berman.
Founded in 2015 by Nick Antoine and Chad Strader, Red Art's mission to create a more diverse supply chain sector has been ingrained in the firm. The firm, which is 100% Black-owned, believes that increased diversity within the supply chain industry isn’t just the right thing to do but also good for business–addressing labor shortages and making companies more competitive.
Looking forward to 2023, Red Arts Capital anticipates expanding its investments into the aerospace, defense, and manufacturing industries to further support supply chains across the U.S. economy.
* Performance quoted represents past performance and does not guarantee future results or similar.
Acalyx Advisors acted as exclusive fundraising advisor, while Greenberg Traurig, LLP served as legal counsel.
About Red Arts Capital
Based in Chicago, Illinois, Red Arts Capital is a leading investment firm focused on supply chain and logistics-related businesses. Red Arts Capital seeks to partner with and invest in privately-owned, primarily family-owned, and multi-generational businesses with solid business fundamentals and a strong track record and reputation. With sector expertise and a commitment to stewardship and excellence, Red Arts Capital’s approach earns the firm a trusted seat at the table with portfolio companies, investors, and partners. For more information about Red Arts Capital, please visit www.redartscapital.com.
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