Haslam Family’s HF Capital to Invest $725 Million in Ara Energy Decarbonization Initiative

HF Capital, the investment arm of the Haslam family based in Knoxville, has committed up to $725 million to support Ara Energy Decarbonization, a new unit of Ara Partners that aims to reduce carbon emissions in the energy sector across North America. The unit, led by former Pilot CEO Shameek Konar, will focus on acquiring energy companies and assets to help lower emissions. Ara Partners, a global private equity and infrastructure firm founded in 2017 to tackle climate change, made the announcement on September 16.

In 2023, Ara’s portfolio of 28 businesses achieved significant environmental milestones, cutting 10.8 million tons of carbon emissions and eliminating 424,000 tons of waste. As demand for electricity surges, particularly driven by AI technology and data centers, more attention has been directed toward the energy sector, which is responsible for approximately 75% of global greenhouse gas emissions.

Founded by James A. Haslam II in 1958, the Haslam family built Pilot into the largest travel center chain in North America and a key supplier of fuel to the transportation sector. Before selling Pilot to Warren Buffett’s Berkshire Hathaway, the Knoxville-based company was ranked the fifth-largest private company in the U.S. by revenue. Pilot is not involved in the current investment, according to a spokesperson for Ara Partners.

The Haslam family, including former Tennessee governor Bill Haslam and Cleveland Browns owner Jimmy Haslam, is considered the wealthiest family in Tennessee and one of the richest in the nation. They are 31st among the wealthiest U.S. families in 2023, with an estimated net worth of $14.4 billion.

Jimmy Haslam expressed his enthusiasm for the partnership with Ara in a press release, stating that HF Capital is proud to make a significant capital commitment to support Konar and his team as they lead the new decarbonization strategy. HF Capital’s investment portfolio spans traditional and renewable energy companies, including Arizona DF Renewables and solar developer Silicon Ranch, as well as ventures in insurance and food production.

Charles Cherington, co-founder and managing partner at Ara Partners, emphasized that Ara’s decarbonization plans would not disrupt energy production. He acknowledged the role of pollutive energy sources in the energy transition over the next few decades but stressed the importance of addressing carbon emissions head-on. Cherington stated that Ara intends to apply its proven methods and financing expertise to decarbonize the conventional energy value chain.

Ara operates out of offices in Boston, Houston, Washington, D.C., and Dublin, with a focus on reducing greenhouse gas emissions and improving waste management. As of June 30, the firm managed $6.3 billion in assets. Its strategy aims to combine significant potential for emissions reduction with strong financial returns. Among its investments is Genera, a Tennessee-based leader in producing compostable packaging from non-wood fibers, which Ara acquired in 2022.

Konar, who now leads Ara Energy Decarbonization, served as CEO of Pilot from January 2021 to April 2023, taking over from Jimmy Haslam before leaving the company after Berkshire Hathaway acquired an 80% controlling interest and appointed Adam Wright as CEO. During his time at Pilot, Konar oversaw the company’s expansion into renewable fuels and its partnership with GM to build a network of EV chargers. Under his leadership, Pilot generated $56.8 billion in revenue and sold more than 16 billion gallons of fuel in 2023.

Before his tenure at Pilot, Konar held roles at several energy firms, including Mercuria Energy Group and Constellation Energy. He also serves on the advisory board of the Haslam College of Business at the University of Tennessee at Knoxville, where he teaches courses on climate change and mergers and acquisitions as an adjunct professor. Along with Ara co-founder Cherington, Konar is a board member of the Conservation Fund.

Have you read?
The Daunting CEO Agenda: What it Means for Communications.
How to Write Attractive Book Proposals? Jennifer Scott Pens Some Tips.
The Psychology Tool Leaders Can Use to Increase Productivity.
Generative AI Offers Major Benefits for Independent Workers.
7 things I didn’t know about flying business class.