Arlington Capital has held a first close on its third fund, according to a regulatory filing. The vehicle features a a $750 million target, and has secured $204.7 million in commitments from 13 investors. Arlington began circulating its private placement memorandums in January of this year.
Credit Suisse is the firm’s placement agent on this fund, even though it used UBS for its second fund, a $585 million pool. Apparently UBS told the firm that the leap from $585 million to $750 million was too steep given the environment. Likewise, the firm’s main contact at UBS, Mark Bourgeois, left UBS to go to Lehman Brothers in March 2008.
Arlington is based in Washington, D.C. The firm got its start in 1999, founded by Jeffrey Freed and Robert Knibb. The firm’s last fund posted a net 1.8% IRR, which doesn’t really reflect any exits. Earlier this month, Arlington Capital acquired J.A. Reinhardt and Company through its portfolio company, TSI Group, Inc. The company makes manufactures thermal and mechanical products.