Paladin Capital Raises $340 Million for Third Fund

Paladin Capital Group has raised $340 million for Paladin III, which is a successor to the $235 million Paladin Homeland Security Fund raised in 2004. An official announcement is expected to come later today.

The Washington, D.C.-based firm plans to continue a multi-stage strategy focused on homeland security, which includes everything from critical infrastructure IT to antimicrobial solutions to alternative energy.

“Our goal, first and foremost, is to generate the highest possible returns for our limited partners,” says Mark Maloney, a Paladin co-founder and managing partner. “We continue to do alternative energy and a whole bunch of things around critical infrastructure… We also have companies that provide technologies and software that allow financial institutions to protect themselves from cyber attack from the outside.”

Paladin so far has invested $67 million of the new fund (which was marketed with a $300m cover), and also has made a few personnel changes: Colin Bryan has been promoted to principal, Lee Buchanan has joined as a venture partner (former ass’t sec of the Navy for R&D and acquisition) and Winston Hickox has joined Paladin’s strategy advisory board (former sec. of the California EPA).