Goldman Sachs makes GP stakes investment in Arlington Capital

Arlington will use proceeds from the investment to facilitate continued growth, including utilizing its sector expertise to provide additional differentiated investment vehicles for investors. 

Goldman Sachs acquired a minority interest in Arlington Capital Partners management company. Goldman Sachs made the passive, non-voting interest through its Petershill program. The investment follows a multi-decade relationship in which Goldman Sachs Asset Management was a limited partner in Arlington funds. Arlington will use proceeds from the investment to facilitate continued growth, including utilizing its sector expertise to provide additional differentiated investment vehicles for investors.

Press Release

Arlington Capital Partners (“Arlington”), a leading middle market private equity firm, today announced a passive, non-voting, minority equity investment by Goldman Sachs Asset Management’s (“GSAM”) Petershill program, creating a strategic relationship with one of the world’s leading investment managers and accelerating Arlington’s growth and success.

The investment follows a multi-decade relationship between Goldman Sachs and Arlington in which GSAM has been a limited partner investor in Arlington’s funds. The transaction will have no impact on the day-to-day operations or management of Arlington. The additional capital will facilitate the continued strategic growth of Arlington as it expands an existing first-class base of global limited partners, utilizes its unique sector expertise to provide additional highly differentiated investment vehicles to its investors, and further invests in the firm’s organization and infrastructure.

Matt Altman, Michael Lustbader, and Peter Manos, the Managing Partners of Arlington, said, “We are excited to expand our partnership with Goldman Sachs. They have an outstanding reputation within the investment community and we are privileged that they have chosen to make this strategic minority investment in our platform through the Petershill program. GSAM has a long history of supporting the world’s top performing alternative asset managers, and we are honored to have their partnership as we continue to grow our firm.”

Christian von Schimmelmann, co-head of Goldman Sachs Asset Management’s Petershill unit, said, “Arlington Capital Partners has built a world-class private equity platform, delivering differentiated value to its investors for over two decades. Arlington’s expertise within their core sectors affords them a reputation within those industries that creates a true competitive advantage and has enabled them to deliver industry-leading results for their investors. We are eager to expand our relationship with Arlington through this investment and look forward to leveraging our firm’s experience and expertise to accelerate Arlington’s next phase of growth in line with its strategic objectives.”

Evercore Inc. provided financial advice and Kirkland & Ellis LLP provided legal counsel to Arlington in connection with the transaction. Fried, Frank, Harris, Shriver & Jacobson LLP provided legal counsel to Goldman Sachs Asset Management.

About Arlington Capital Partners
Arlington Capital Partners is a Washington, DC-based private equity firm that is currently investing out of Arlington Capital Partners V, L.P., a $1.7 billion fund. The firm has managed approximately $4.0 billion of committed capital via five investment funds. Arlington is focused on middle market investment opportunities in growth industries including aerospace & defense, government services and technology, healthcare, and business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enable Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their Company’s position as leading competitors in their field. Visit arlingtoncap.com to learn more.

About Goldman Sachs Asset Management (GSAM) Petershill
Goldman Sachs Asset Management Petershill launched over a decade ago to partner with leading alternative asset managers and help to accelerate their strategic development. GSAM Petershill’s minority investments seek to support the creation of long-term value by providing strategic capital to enhance employee retention, facilitate business development, buy out legacy equity holders and generate strategic options – while preserving the autonomy and entrepreneurial spirit of these organizations. GSAM manages over $250 billion in assets across leading real estate, private equity, hedge-fund, and traditional long-only managers.