Godspeed Capital Closes $250M Government-Tech Fund

Godspeed Capital Management LP, a lower middle-market defense and government services and tech-focused private equity firm, has closed its Godspeed Capital Investment Program II at $250 million.

The capital was raised in less than six months, exceeding its $185 million initial target. The firm previously raised $155 million for its inaugural program, Godspeed Capital Investment Program I, which closed in 2021.

“We are thrilled with our initial investments and look forward to continuing to execute our strategy on behalf of our investors and partners and to growing our portfolio of leading companies,” said Douglas T. Lake Jr., founder and managing partner of Godspeed Capital.

The Washington, DC-based firm launched in April 2021 with anchor funding from East Rock Capital LLC, a New York private equity firm that manages about $2.5 billion for high-net-worth families.

Though sponsors such as Vista Equity Partners LLC, GTCR LLC and Insight Partners have begun to roll up government technology companies in recent years, government seed capital and other factors have created a hotbed of startups that upgrade technology for state, local and federal offices.

A typical investment for Godspeed involves companies generating approximately $3 million to $30 million in EBITDA, although it has significant support to complete larger transactions. The firm focuses on control buyouts, buy-and-builds, corporate carve-outs and special situations.