Arlington Capital Partners Circulates PPMs


Arlington Capital Partners officially launched fundraising on its third buyout fund yesterday, according to a source. As peHUB reported in September, the fund has a $750 million target.

Credit Suisse is the firm’s placement agent, which is notable since Arlington had used UBS for its prior fund, raising $585 million for its second effort. It’s debut fund raised $452 million. Part of that was because of the departure of UBS placement agent Mark Bourgeois to Lehman Brothers in March, but it was also because UBS told the firm it was unsure about the steep increase in fund size in such a difficult market. Nevertheless, CSFB stepped up to the plate and is placing the fund.

The firm’s last fund has posted a net 1.8% IRR, which, as I noted in September, doesn’t really reflect any exits.

Arlington is based in Washington, D.C. The firm got its start in 1999, founded by Jeffrey Freed and Robert Knibb.

Activity this year includes:

This year the firm invested in Virgo Holdings, a trade show and conference service provider, Consolidated Precision Products, a supplier to the defense industry, and Sandy Bay Machine, an add-on to the firm’s defense and aerospace components and systems platform. In February the firm sold SECOR International, its consulting and compliance business, to Stantec Inc (Via Buyouts)