FedCap Partners, a Reston, Va.-based private equity firm focused on the Federal contracting industry, has held a first close on $15.5 million for its debut fund. According to a regulatory filing, the fund target is $30 million.
FedCap Partners, LLC (“FedCap”), a private equity fund focused on the Federal contracting industry, had its initial closing on February 5th, 2010. The Managing Member of FedCap Partners is FedCap Advisors, LLC, whose managers and owners are Rick Knop and Leslee Belluchie.
The objective of FedCap is to invest in and partner with small and middle market Federal services and technology companies who are positioned in growing areas of the Federal budget and whose owners desire growth capital and advice from industry leaders. FedCap plans to make both minority and majority equity and debt investments and provide advice from industry experts to enable the Fund’s portfolio companies to become attractive targets for acquirers.
Two primary factors have disproportionately adversely affected small and medium sized Federal contractors in recent years. First, the continuing “capital crunch” has impacted Federal contractors under $50 million in revenue and minority equity capital is in short supply. Secondly, the Small Business Administration’s (“SBA”) recertification rule has made it much more difficult for companies with 20% or more in “set-aside” revenue to sell and receive fair market value for their businesses. FedCap expects to partner with owners of companies impacted by these issues and provide capital and advice to transition contracts and accelerate growth.
The two managers of the Managing Member have significant backgrounds in the Federal contracting industry. Rick Knop was the former co-founder and principal owner of the Windsor Group and led its development into one of the premier investment banks for the Federal contracting industry. Windsor Group was acquired in 2005 by BB&T Capital Markets. As an investment banker, Mr. Knop has closed well over 100 transactions ranging from $10 million to $1.2 billion. Over the years, he has won many industry awards and has held and currently holds leadership positions in several industry related organizations. Leslee Belluchie has had a 25-year career in the Federal contracting industry and has held senior operational and marketing positions including Chief Marketing Officer and Executive Vice President for SI International; Partner, leading IBM’s National Intelligence Services efforts; and various operational and business development roles at CSC. Together with their staff, the FedCap management team has over 60 years of collective experience within the Federal marketplace.
The Investors/Partners in FedCap Partners, LLC include many owners and former owners of Federal contracting companies, former senior Federal officials, and leaders in the greater Washington, D.C. community. The Board of Advisors of FedCap Partners, LLC (all of whom have invested in FedCap) are:
- Walter Batson, Jr. is the co-founder, Chairman of the Board, and CEO of Camber Corporation. Under his leadership, Camber has grown into a diversified company, supporting customers around the world, specializing in information technology, decision support systems, engineering and simulation. Camber Corporation was acquired in late 2008 by New Mountain Capital, a New York-based private equity firm.
- Linda Berdine has 35 years of executive experience spanning both industry and government. Ms. Berdine founded G&B Solutions Inc. in 2001 to provide management consulting and information technology services to senior government executives. Under Ms. Berdine’s leadership, the company had extraordinary organic growth and was acquired by VSE Corporation in 2008. Her government experience includes serving as the first woman Chief Information Officer for the U.S. House of Representatives. Ms. Berdine has held various leadership positions in professional organizations supporting the Federal contracting industry and has received numerous industry awards including two Top 100 Federal Executives Awards.
- Denis Berube is the Chief Operating Officer of Lau Technologies. Mr. Berube and his wife are the founders and owners of Lau Technologies, a systems integration, design, and manufacturing company in the military and intelligence fields. They have developed and sold three private companies and one public company – Viisage Technology. Viisage is now L-1 Identity Solutions, the market leader in human identification technology and products for defense and homeland security purposes. Mr. Berube is on the Board of Directors of L-1.
- Gordon England is the President of E6 Partners LLC, a firm specializing in international business. Previously, Mr. England served as the 29th Deputy Secretary of Defense. He also served as the 72nd and 73rd Secretary of the Navy and as the first Deputy Secretary of the Department of Homeland Security. Prior to joining the Federal government, Mr. England served as President of the General Dynamics Fort Worth Aircraft Company (later Lockheed) and Executive Vice President of General Dynamics.
- MG Robert A. Harding (Ret) has spent more than 35 years in the U.S. Intelligence Community and Federal contracting community working national security issues. He recently sold Harding Security Associates, Inc. (“HSA”), a small business consisting of 400 professionals who provide intelligence support to many of the Nation’s most sensitive activities. General Harding’s service in the U.S. Army included assignments as Director for Operations at the Defense Intelligence Agency and Deputy Intelligence Chief for the U.S. Army. Currently he participates in numerous advisory panels within the Intelligence Community.
- Christopher Meyers has been directly involved in over $2.5 billion worth of principal investment activity. Mr. Meyers is currently the Chairman and CEO of CJM Investments Corp., which focuses on investing in and developing early stage technology companies. Prior to forming CJM Investments, Mr. Meyers was with Carlyle Venture Partners.
- Russell Ramsey is Chairman and CEO of Ramsey Asset Management, which he founded in 2001 and is based in the Washington, D.C. area. Prior to 2001, Mr. Ramsey was President and Co-CEO of Friedman, Billings, Ramsey Group, Inc., which he co-founded in 1989. Mr. Ramsey is the Chairman of the Board of Trustees of George Washington University.
FedCap Partners, LLC is headquartered in Reston, VA. All inquiries should be directed to info@FedCapPartners.com.