Arlington targets government-regulated industries and adjacent markets. We believe that our focus generates several inter-related advantages.

Aerospace & Defense

Fueling the advancement and growth of the nation’s mission-critical defense systems.

Government Services &
Technology

Funding systems & technologies in a highly regulated market with high barriers to entry or substitution.

 

Healthcare

Identifying companies with market leadership in niche growth verticals.

Business Services &
Software

Investing in companies with competitive advantages in proprietary technology or unique processes.

Strategic Approach to Success

  • Domain Expertise
  • Executive Partnerships
  • Advisory Network
  • Regulatory Environment

Domain Expertise

Arlington’s deep understanding of the industries surrounding the government and their corresponding sub-verticals allows us to:

  • Identify attractive companies and to begin developing relationships with the owners and management well in advance of a transaction
  • Leverage our industry knowledge to have a smart and efficient diligence process
  • Present acquisition offers that carry the credibility of industry veterans, providing sellers with confidence in our ability to close a transaction
  • Add value and drive growth by leveraging industry contact networks

Partner With Industry Leading Executives

A key to our strategy is identifying and building strong relationships with top management teams within our targeted industries. We will either partner with a high performing incumbent management team already in place at a company, or utilize our network of executives to identify and pursue investment opportunities. We support our management partners through incentive-driven structures designed to build additional value post-investment. Arlington’s professionals work closely with management on major strategic issues through its participation on the board of directors, but we do not get involved with day-to-day operations, a responsibility that resides solely and exclusively with management.

Furthermore, we pride ourselves in our ability to structure transactions that serve the goals and objectives of all parties, from founder recapitalizations with substantial ongoing ownership to complex corporate carve-outs and traditional buyouts.

Extensive Network of Advisors and Thought Leaders

Having invested in dozens of companies in our target sectors and being active participants in the industry communities, we retain close relationships with management teams, board members and customers, all of whom have insights and perspectives that are relevant for our current and future investments. We feel that we have a unique ability to assist our portfolio companies through our network and bring value-added resources to each investment.

Unique Understanding of the Federal Government and Regulatory Environment

The federal government directly contributes to well over one-fifth of all economic activity in the United States and indirectly impacts an even wider range of economic behavior through its regulatory mechanisms. We believe that this dynamic – a concentrated influence over economic activity – presents an opportunity for sophisticated investors who live and work within the Washington D.C. community, to navigate the complicated dynamics of the U.S. government. Impending legislation, regulation, geopolitical developments and shifting political winds can have magnified effects on certain economic sectors – Arlington seeks to understand, verify and invest behind such trends.

"Buy and Build Strategy"

After an investment in a platform is made, we work closely with the management team to identify the various avenues for growth, which, more often than not, include acquiring companies with complementary capabilities, technology or customers. Most importantly, we recognize the importance of fostering a culture of shared values, philosophy and commitment to excellence when building through acquisition to supplement organic growth. Arlington evaluates these potential acquisitions in support of platform investments, combining our investment acumen and industry knowledge with the tactical and operational expertise of our portfolio company executives. Since 1999, Arlington has made numerous platform investments in our target industries. These acquisitions have created a variety of opportunities that have driven the growth of the combined companies going forward:

  • Revenue synergies through cross-fertilization of customers
  • Intellectual property and technology sharing between previously separate organizations
  • Infusing the core business with additional management talent and depth that comes from follow-on acquisitions
  • Greater levels of investment in research and development
  • Potential for valuation expansion as scale is achieved through organic growth and add-on acquisitions
  • Consolidation opportunities in fragmented industries
  • Understanding of companies that operate on a global scale
  • Consolidated past performance or qualifications present a stronger value proposition to customers

Transaction Profile

Arlington pursues platform investments with enterprise values between $50 million and $1.5 billion. We seek investments that:

Exhibit strong growth potential to be industry leaders
Operate with the highest level of integrity
Have positive cash flow dynamics and operate in large and growing markets
Share a commitment to hard work and providing customers with superior results