Arlington Capital Partners Announces Final Closing of its Latest Private Equity Fund at $575 Million

WASHINGTON, DC, April 5, 2006 – Arlington Capital Partners (“Arlington”), a Washington DC-based private equity firm (www.arlingtoncap.com), announced the successful final closing of its second fund, Arlington Capital Partners II, LP (“Fund II”) with capital commitments from limited partners totaling $575 million.  Arlington originally had been pursuing $500 million of commitments and was oversubscribed even at the final closing level.

With the closing of this new fund, Arlington has over $1 billion of committed capital focused on middle market buyout opportunities. Founded in 1999, Arlington invests in growth industries including aerospace/defense, federal and commercial IT, media, education & training, healthcare services and business services & outsourcing.

“We are delighted with the support we received from our returning limited partners, as well as the caliber of the new investors we were able to attract to Fund II.  We are very pleased to have a registry of top tier public and corporate pension funds, endowments, financial institutions and fund-of-funds represented in our current fund,” said Robert Knibb, a partner and co-founder of Arlington.

Jeffrey Freed, also a partner and co-founder of Arlington, added, “With the capital from our new fund, we plan to continue our strategy of identifying quality privately held companies to acquire, as well as working in partnerships with independent operating executives in consolidating sectors.”

 “Given our proactive approach, we are seeing many attractive investment opportunities in our targeted verticals.  We believe that our Washington, DC presence and domain expertise in these sectors provides significant benefits to our activities,” said Perry Steiner, a partner at the firm.

Arlington has already completed three new platform investments in Fund II.

Peter Manos, a partner of Arlington, added, “Our first three investments in Fund II are in three of our six sectors of expertise — aerospace/defense, business services and media.  We have structured these transactions on attractive terms to both the sellers and the fund by listening carefully to the objectives of the business owners and fashioning a solution accordingly.”

Arlington completed eight platform LBO investments representing nearly twenty total transactions in its first fund, Arlington Capital Partners, LP.  It has realized on four of those investments to date, returning significant proceeds to its investors.  Most recently, Arlington sold Apogen Technologies, Inc., a Virginia-based Federal IT services company the firm built in partnership with three prominent industry executives, for approximately $300 million to QinetiQ, a UK a defense technology and security services concern.

The fund will be managed by a senior investment team of fifteen professionals who have largely been in place since the inception of the firm.  The four partners of the firm have an average of 15 years of private equity experience.  In aggregate, the partners have completed over 90 transactions in excess of $15 billion in aggregate enterprise value over their careers.

Arlington was represented by UBS Securities as its placement agent for Fund II.  Arnold & Porter acted as fund counsel.

About Arlington Capital Partners

Arlington Capital Partners is a Washington, DC-based private equity fund with over $1 billion of committed capital focused on middle market buyout investment opportunities in growth industries including: aerospace/defense, IT and engineering services, media, education & training, healthcare services, business services & outsourcing, and specialized manufacturing and related industries. The firm’s professionals have a unique combination of operating and private equity experience that enables 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.

SOURCE: Arlington Capital Partners