ACP VII will continue the Firm's successful multi-decade strategy of building market leaders in areas of strategic national importance
Arlington Capital Partners ("Arlington" or the "Firm"), a Washington, D.C. area private investment firm specializing in government-regulated industries, today announced the closing of Arlington Capital Partners VII ("ACP VII" or the "Fund"), with capital commitments totaling $6.0 billion. The Fund was significantly oversubscribed, reaching its hard cap in less than five months and surpassing its $4.75 billion target. Fund VII represents a 57% increase over Arlington's previous fund, Arlington Capital Partners VI, which closed in 2023, and a more than 250% increase from Arlington Capital Partners V, which closed in 2019.
Arlington's Managing Partners, Matt Altman, Michael Lustbader, Peter Manos, and David Wodlinger, issued the following statement: "The investment landscape for our firm has never been more compelling. Increasing domestic and international budgets for national security, the revitalization of U.S. manufacturing, and the expansion of government software and tech-enabled services are driving increased demand for the mission-critical companies that we build. We are thankful for the partnership of our investors, founders, and management teams and look forward to delivering continued strong performance in ACP VII."
ACP VII will continue the Firm's 26-year track record of building transformative companies in sectors of vital importance to the economy, security, and future of the U.S. Since its inception in 1999, Arlington has completed approximately 200 investments in its focus areas of aerospace and defense, government services and technology, and healthcare. The Firm has invested over $1 billion across 35 investments since the beginning of 2024 and has executed multiple successful exits, including the recent sale of BlueHalo to AV (NASDAQ:AVAV), creating a global leader in defense technology. Arlington and its portfolio companies contribute significantly to local economies across the country, operating approximately 10 million square feet of U.S. manufacturing space.
Regarding Arlington's investor base, the Managing Partners stated: "We are fortunate to have a world-class set of Limited Partners and are grateful for their strong continued support, reflected by re-up demand in Fund VII exceeding 115% from Fund VI. Our investors represent a select group of leading pensions, asset managers, insurers, endowments, foundations, and other blue-chip institutions exclusively based in the U.S. and select allied countries. The success of this fundraise is a testament to the strategic nature of our investor base and reflects a shared conviction in ACP's differentiated, purpose-built approach to building companies of national significance."
As ACP VII is deployed, Arlington expects to focus on many of its long-term investment themes, including manufacturing and supply chain onshoring, improving government efficiency with mission-critical software, next-generation defense tech, cybersecurity, commercial aviation, advanced medical device and life sciences development, and healthcare technology.
Evercore acted as Arlington's exclusive global placement agent, and Simpson Thacher & Bartlett LLP served as fund counsel.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C. area private investment firm specializing in government-regulated industries. Focused on the aerospace and defense, government services and technology, and healthcare sectors, the Firm partners with founders and entrepreneurs to build platforms of strategic importance to national priorities. Operating in markets with high barriers to entry, Arlington looks to partner with organizations within these industries that save lives, improve effectiveness, and reduce costs. Since inception in 1999, Arlington has invested in approximately 200 companies and raised over $14 billion in committed capital. For more information, visit Arlington's website at www.arlingtoncap.com and follow Arlington on LinkedIn.
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