Arlington Capital Partners breaks $3B mark with newest fund
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By
Ross Wilkers
The private equity firm describes submarine structures and cyber as among the key focus areas for fund number six.
Rewind back almost three years to look at the number $1.7 billion, a figure that represented the amount Arlington Capital Partners fetched from investors for the private equity firm's fifth fund.
Fast forward to the now-closed Fund VI and take note of the capital commitments raised this time around: $3.8 billion, more than double the number for Fund V and exceeding the goal of $3.25 billion. Arlington said Thursday this is the largest fund in its almost 25-year history.
The firm describes Fund VI's key focus areas as including ultra-complex aerospace engine components, submarine structures for the Navy, next-generation cyber solutions, advanced biomaterials and therapeutics, public sector software modernization, and other needs across regulated markets.
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.
In early 2023, Arlington completed one of its largest and highest profile exits via the sale of Octo to IBM for approximately $1.2 billion. That figure also represents the largest-ever for an acquisition in the history of IBM's consulting group, which Octo is now integrated into.
Evercore acted as Arlington’s exclusive global placement agent for Fund VI and Kirkland & Ellis LLP worked as legal counsel.