Godspeed Capital closes second investment fund

Private equity firm Godspeed Capital Management has raised its second fund from new and existing institutional investors to continue the strategy of backing companies in the government market.

Godspeed Capital Investment Program II fetched $250 million in capital commitments, up from the $155 million for the firm's first fund that closed in 2021. Fund two completed its raise in less than six months and exceeded its $185 million initial target, Godspeed Capital said Thursday.

East Rock Capital continues on as the strategic partner of Godspeed Capital, which opened for business in the spring of 2021 as an investor focused on founder- and management-owned businesses across the government market.

One of Godspeed Capital's flagship investments in the federal technology landscape is SilverEdge Government Solutions, which launched under its current branding in the summer of 2022 and made a pair of acquisitions later that fall.

Stratus and MOREGroup are the other two main Godspeed Capital portfolio companies. They specialize in architecture, engineering, design and consulting work for government agencies and customers in highly regulated commercial verticals.

“We are proud to partner with these leading institutional investors and are grateful for the confidence they have placed in our team as we execute our strategy of collaborating with founders, entrepreneurs, and management teams across the defense and government services sectors,” Douglas Lake, Godspeed Capital's founder and managing partner, said in a release. “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.”

Lazard Frères & Co. LLC acted as the exclusive placement agent for the second fund, while Davis Polk & Wardwell LLP was legal counsel.