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Adviser Profile

As of Date 03/28/2024
Adviser Type - Large advisory firm
Number of Employees 87 14.47%
of those in investment advisory functions 66 17.86%
Registration SEC, Approved, 3/30/2012
AUM* 10,576,406,350 -4.90%
of that, discretionary 10,576,406,350 -4.90%
Private Fund GAV* 10,576,700,867 -4.95%
Avg Account Size 440,683,598 -4.90%
SMA’s No
Private Funds 24
Contact Info 212 xxxxxxx
Websites

Client Types

- Pooled investment vehicles

Advisory Activities

- Portfolio management for pooled investment vehicles

Compensation Arrangments

- A percentage of assets under your management
- Performance-based fees

Recent News

Reported AUM

Discretionary
Non-discretionary
11B 10B 8B 6B 5B 3B 2B
2015 2016 2017 2018 2019 2020 2021 2022 2023

Private Funds



Employees

Private Funds Structure

Fund Type Count GAV
Fund TypePrivate Equity Fund Count24 GAV$10,576,700,867

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Brochure Summary

Overview

Arsenal Capital Management LP (“Arsenal Capital Management”, “ACM” or “Arsenal”), a Delaware limited partnership and a registered investment adviser formed in 2000, provides investment advisory services on a discretionary basis to several private equity funds: (i) Arsenal Capital Partners III LP and Arsenal Capital Partners III-B LP comprise “Fund III”; (ii) Arsenal Capital Partners IV LP and Arsenal Capital Partners IV-B LP, comprise “Fund IV”; (iii) Arsenal Capital Partners V LP and Arsenal Capital Partners V-B LP comprise “Fund V”; (iv) Arsenal Capital Partners VI LP, Arsenal Capital Partners VI-B LP and Arsenal Capital VI Executive LP (“VI Executive”) comprise “Fund VI”; and (v) Arsenal Capital Partners Growth LP, Arsenal Capital Partners Growth B LP and Arsenal Capital Growth Executive LP (“Growth Executive”) (the “Growth Fund”). Fund III, Fund IV, Fund V, Fund VI, and the Growth Fund are organized to invest in portfolio companies (together with any future private equity fund to which ACM or its affiliates provide investment advisory services, each an “Arsenal Fund” and collectively the “Arsenal Funds”). In addition, ACM also provides investment advisory services to twelve co- investment vehicles: (i) ACP Biospecimen Holdings, LLC (“ACP Biospecimen Holdings”), (ii) Arsenal IO Co-Invest 1 LP (“ACP IO 1”), (iii) Arsenal IO Co-Invest 2 LP (“ACP IO 2”), (iv) Arsenal IO Co-Invest 3 LP (“ACP IO 3”), (v) Arsenal Revolution Plastics Co-Invest 1 LP (“Arsenal Revolution 1”), (vi) Arsenal Revolution Plastics Co-Invest 2 LP (“Arsenal Revolution 2”), (vii) ACP WCG Co-Invest 1-2020 LLC (“ACP WCG 1-2020”), (viii) ACP WCG Co-Invest 2-2020 LP (“ACP WCG 2-2020”), (ix) ACP WCG Co-Invest 3-2020 LP (“ACP WCG 3-2020”), (x) ACP WCG Co-Invest 4-2020 LP (“ACP WCG 4-2020”), (xi) ACP Value Demonstration Co- Invest 1 LP (“ACP VD 1”) and (xii) ACP Value Demonstration Co-Invest 2 LP (“ACP VD 2”, and together with ACP Biospecimen Holdings, ACP IO 1, ACP IO 2, ACP IO 3, Arsenal Revolution 1, Arsenal Revolution 2, ACP WCG 1-2020, ACP WCG 2-2020, ACP WCG 3-2020, ACP WCG 4-2020, and ACP VD 1 the “Co-Invest Vehicles”, and together with the Arsenal Funds, the “Funds”). The Co-Invest Vehicles were organized to facilitate individual investments into portfolio companies of Arsenal Funds for a discrete group of co-investors. Arsenal Capital Investment III LP (“Fund III GP”), a Delaware limited partnership, serves as the general partner to Fund III. Arsenal Capital Investment IV LP (“Fund IV GP”), a Delaware limited partnership, serves as the general partner to Fund IV. Arsenal Capital Investment V LP (“Fund V GP”), a Delaware limited partnership, serves as the general partner to Fund V. Arsenal Capital Investment VI LP (“Fund VI GP”), a Delaware limited partnership, serves as the general partner to Fund VI. Arsenal Capital Investment Growth LP (“Growth Fund GP”), a Delaware limited partnership, serves as the general partner to the Growth Fund. Arsenal Capital Investment IO LP (“Arsenal IO Co-Invest GP”), a Delaware limited partnership, serves as the general partner to ACP IO 1, ACP IO 2 and ACP IO 3. Arsenal Capital Investment Revolution Plastics LP (“Arsenal Revolution Co-Invest GP”), a Delaware limited partnership, serves as the general partner to Arsenal Revolution 1 and Arsenal Revolution 2. Arsenal Capital Investment WCG 2020 LLC (“ACP WCG 2020 Co-Invest GP”), a Delaware limited liability company, serves as the general partner to ACP WCG 2-2020, ACP WCG 3-2020 and ACP WCG 4-2020. Arsenal Capital Investment Value Demonstration LP (“Arsenal VD Co-Invest GP”), a Delaware limited partnership, serves as the general partner to ACP VD 1 and ACP VD 2. ACP Biospecimen Holdings, LLC and ACP WCG 1-2020 are each controlled by a board of managers (the “Board of Managers”). Fund III GP, Fund IV GP, Fund V GP, Fund VI GP, Growth Fund GP, Arsenal IO Co-Invest GP, Arsenal Revolution Co-Invest GP, ACP WCG 2020 Co-Invest GP, Arsenal VD Co- Invest GP and the Board of Managers are each, a “General Partner,” and collectively, together with any future affiliated general partner entities, the “General Partners.” ACM is controlled by its general partner, Arsenal Capital Group LLC, a Delaware limited liability company, which is controlled by its board of managers which consists of Jeffrey B. Kovach and Terrence M. Mullen (collectively, the “Senior Partners”). As of December 31, 2023, ACM managed approximately $10,576,406,350 in client assets on a discretionary basis. ACM serves as the management company to Fund III, Fund IV, Fund V, Fund VI, Growth Fund, ACP IO 1, ACP IO 2, ACP IO 3, Arsenal Revolution 1, Arsenal Revolution 2, ACP WCG 2-2020, ACP WCG 3-2020, ACP WCG 4-2020, ACP VD 1 and ACP VD 2. Personnel of ACM comprise the Board of Managers for each of ACP Biospecimen Holdings, LLC and ACP WCG 1-2020. ACM, the General Partners and other affiliates are collectively referred to as “Arsenal”. In its capacity as the management company of the Arsenal Funds and through its appointees to the Board of Managers of the Co-Invest Vehicles, ACM has the authority to manage the business and affairs of the Funds. Arsenal’s investment advisory services to the Funds consist of identifying and evaluating investment opportunities, negotiating investments, managing and monitoring investments, and achieving dispositions for such
investments. Investments are made predominantly in non-public companies, although investments in public companies are permitted to some extent. The senior professionals or other personnel of ACM or its affiliates generally serve on such portfolio companies’ respective boards of directors or otherwise act to influence control over management of portfolio companies held by the Funds. Arsenal makes buyout, recapitalization, and growth equity investments in the middle-market Industrial and Healthcare sectors. Within the Industrial sector, Arsenal sees a technology- and innovation-rich investment opportunity set of businesses poised to meet the growing demand for improved functionality, efficiency, sustainability, and performance of end products and services. Within the Healthcare sector, Arsenal’s attention is focused on building technology-enabled services companies that aim to serve as catalysts for transforming the healthcare system. More specifically, Arsenal’s healthcare team concentrates on: (i) the pharmaceutical services segment, which is facing high drug development costs and lengthy development cycles, and thus in need of technology-rich solutions to increase efficiency, reduce costs, and improve efficacy; and (ii) care delivery and technology services, as new efficient and integrated care delivery models have emerged that are aimed at reducing the cost of healthcare, improving patient outcomes and managing compliance risk. Across both sectors, Arsenal employs intensive, hands-on oversight, often strengthening and developing management teams and significantly enhancing and augmenting a company’s key capabilities, in an effort to build strategically valuable, growth businesses. Advisory services provided to the Funds are tailored to the investment objectives and investment restrictions, if any, as set forth in the respective Funds’ limited partnership agreements (“Partnership Agreements”), limited liability company agreements, private placement or offering memorandum, and other Fund documents (together, the “Governing Documents”). As used herein, the term “limited partners” or “investors” refers to the Funds’ limited partners, shareholders, and/or other investors, as applicable. Arsenal does not tailor Fund investments to the individual needs of investors in the Fund, nor may Fund investors impose restrictions on Arsenal’s ability to invest in certain securities or types of securities. The Funds’ General Partners, however, generally enter into side letters or other written agreements with some investors of the Funds (“Side Letters”) that have the effect of establishing rights under, or altering or supplementing the terms of, the Governing Documents of the respective Funds. Such Side Letters are generally entered into with a Fund investor without the consent of or notice to any other Fund investor. Further, as detailed in the respective Governing Documents for the Funds, Arsenal will establish an advisory board (“Advisory Board”) composed of limited partner representatives of a Fund selected by Arsenal on an annual basis (each of whom are unaffiliated with Arsenal). The Advisory Board will provide such advice and counsel as is requested by Arsenal in connection with Fund investments, potential conflicts of interest, and other Fund matters, as set forth in the Governing Documents for the relevant Fund. Additionally, as permitted by the relevant Governing Documents, Arsenal provides co-investment opportunities to certain current or prospective investors, including limited partners, lenders, market participants, finders, portfolio company management or personnel, and/or certain other persons associated with Arsenal and/or its affiliates, including Consultants and Operating Partners (as defined below). Additionally, members on the Strategic Advisory Boards of the Funds are permitted to co-invest alongside the Arsenal Funds, and to the extent they choose to, they do so for a predetermined and non-variable amount in all investments made by that Fund in each such person’s sector (i.e., industrials or healthcare), other than in extenuating circumstances (typically regulatory or tax related). Such co-investments involve investment and disposal of interests in the applicable portfolio company generally at the same time and on the same terms as the Fund making the investment. However, for strategic, regulatory, process, and other reasons, a co-investor will be permitted to purchase a portion of an investment from one or more Funds after such Funds have consummated their investment in the portfolio company (also known as a post-closing sell-down or transfer). Any such purchase from a Fund by a co-investor generally occurs shortly after the Fund’s completion of the investment to avoid any changes in valuation of the investment, but in certain instances could be well after the Fund’s initial purchase. Where appropriate, and in Arsenal’s sole discretion, Arsenal reserves the right to (and in certain instances will) charge interest on the sale to the co-investor or Co-Invest Vehicle (or otherwise equitably adjust the purchase price under certain conditions), and to seek reimbursement to the relevant Fund for related costs. However, to the extent any such amounts are not charged or reimbursed (including charges or reimbursements required pursuant to applicable law), they will be borne by the relevant Fund.