Arlington Capital Partners, a prominent private investment firm based in Washington, DC, has successfully closed its seventh fund, Arlington Capital Partners VII, with total capital commitments reaching an impressive $6 billion. This latest fund closed within five months and exceeded its initial target of $4.75 billion, marking a notable success in the firm’s fundraising efforts. Notably, this amount signifies a 57% increase over Arlington's previous fund, which concluded in 2023, and represents more than a 250% increase from its fifth fund that closed in 2019.
Since its inception in 1999, Arlington has executed around 200 investments primarily in sectors related to aerospace and defense, government services and technology, and healthcare. In 2024 alone, the firm has invested over $1 billion across 35 transactions, with notable exits including the sale of BlueHalo to AV.
The strategic rationale behind the establishment of Arlington Capital Partners VII is grounded in the firm’s commitment to long-term investment themes that reflect current market trends. Key areas of focus for investments will include manufacturing and supply chain onshoring, enhancing government efficiency, defense technology, cybersecurity, commercial aviation, advanced medical devices, life sciences development, and healthcare technology.
The fund's placement was facilitated by Evercore, which acted as Arlington’s exclusive global placement agent, while Simpson Thacher & Bartlett LLP served as the fund counsel, ensuring legal compliance throughout the process.
As the fund is deployed, Arlington Capital Partners aims to leverage its extensive industry expertise to capitalize on emerging opportunities in its focus areas. This strategic approach is expected to yield significant benefits for the firm’s stakeholders, including potential value creation for shareholders and enhanced job security for employees within its portfolio companies.
Looking ahead, Arlington anticipates that the fund's investments will not only contribute to the firm’s growth but also positively impact the broader market by fostering innovation and efficiency in the sectors it targets. Regulatory considerations, particularly regarding antitrust implications, will be closely monitored as Arlington navigates its investment strategy and executes its deployment plans.