Blue Delta exceeds goal in raising new $150M fund

Government market investment firm Blue Delta Capital Partners has closed its third fund at $150 million in a round that exceeded its $125 million target and was completed within four months.

The McLean, Virginia-based group will use the proceeds to continue its growth stage venture capital investments in government services companies, according to a Blue Delta release.

Founded in 2009, Blue Delta differs somewhat from other similar investment groups in that it takes non-controlling ownership positions in contactors looking to enter their next phase of growth. The firm typically invests anywhere between $10 million and $30 million of equity in companies, many of whom are still led by the founders themselves.

Blue Delta’s most recent high-profile exit was the sale of The Tauri Group to LMI earlier this year.

The firm also was a backer of Acentia until the latter’s acquisition in 2015 by Maximus, and also of PAE when that company was purchased in 2011 by private equity firm Lindsay Goldberg from Lockheed Martin. Another private equity firm in Platinum Equity acquired PAE five years later.

Blue Delta has also been busy on the people front with the July addition of two government contracting veterans to its advisory board in Donna Morea, former CGI Group executive and current Science Applications International Corp. board chair; and former Vistronix CEO Deepak Hathiramani.