Arlington Capital Partners breaks $3B mark with newest fund

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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.