Arlington Closes 6th Government Industrial Fund at $3.8B
Arlington Capital Partners, a Washington, D.C.-area private investment firm specializing in government regulated industries, completed fundraising for Arlington Capital Partners VI, reaching its hard cap of $3.8 billion and surpassing its initial target of $3.25 billion.
The oversubscribed fund is the largest in the firm’s 25-year history.
Fund VI represents a significant increase from the $1.7 billion raised for its fifth fund in 2019, despite a general slowdown in the private equity fundraising environment.
The firm lists Fund VI’s major emphasis areas as ultra-complex aerospace engine components, Navy submarine constructions, next-generation cyber solutions, innovative biomaterials and therapies, public sector software modernization, and other regulated market demands.
Fund VI has already been used to acquire eight companies and 10 follow-on purchases. Arlington’s current portfolio of federal technology companies includes BlueHalo, Eqlipse, Systems Planning & Analysis and Tyto Athene.
Managing partners Matt Altman, Michael Lustbader, Peter Manos, and David Wodlinger, said, “The success of this fundraise is a testament to our team’s unrivalled domain expertise, collaborative approach, and consistent track record across our target sectors, which are poised for substantial growth over the next decade-plus.”
In early 2023, Arlington achieved one of its largest and most visible exits, selling Octo to IBM for around $1.2 billion.
The firm also announced that it has combined three businesses to form Keel, a new portfolio company focused on producing complex structures for U.S. defense programs and is backing the deal from the new funds.