Arlington Capital Partners, a Washington, D.C.-area private investment firm focused on government-regulated industries, has closed Arlington Capital Partners VII (ACP VII) with total capital commitments of $6 billion. The fund surpassed its $4.75 billion target and hit its hard cap in less than five months, marking a 57% increase over the firm’s 2023 predecessor, ACP VI, and a more than 250% increase from ACP V, which closed in 2019.
The new fund will advance Arlington’s long-term strategy of building and scaling market-leading companies in critical sectors, including aerospace and defense, government services and technology, and healthcare. With this latest vehicle, Arlington extends its 26-year track record of investing in industries tied to U.S. national priorities and security.
Since its founding in 1999, Arlington has completed approximately 200 investments and contributed significantly to the domestic economy through its portfolio companies, which collectively operate around 10 million square feet of manufacturing space across the United States. The firm has already invested over $1 billion across 35 transactions since early 2024 and has completed multiple exits, including the sale of BlueHalo to AV, which established a global leader in defense technology.
The oversubscribed raise reflects robust investor confidence in Arlington’s sector expertise and disciplined investment strategy. Fund VII drew re-up demand exceeding 115% from Fund VI, with commitments from a select group of leading pensions, insurers, asset managers, endowments, foundations, and other blue-chip institutions primarily based in the U.S. and allied nations.
Looking ahead, ACP VII will target investment themes such as onshoring of manufacturing and supply chains, next-generation defense technologies, government software modernization, cybersecurity, commercial aviation advancements, and innovations in healthcare and life sciences.
Advisor/counsel: Evercore acted as Arlington’s exclusive global placement agent, while Simpson Thacher & Bartlett LLP served as fund counsel.
KEY QUOTES:
“The investment landscape for our firm has never been more compelling. Increasing domestic and international budgets for national security, the revitalization of U.S. manufacturing, and the expansion of government software and tech-enabled services are driving increased demand for the mission-critical companies that we build. We are thankful for the partnership of our investors, founders, and management teams and look forward to delivering continued strong performance in ACP VII.”
“We are fortunate to have a world-class set of Limited Partners and are grateful for their strong continued support, reflected by re-up demand in Fund VII exceeding 115% from Fund VI. Our investors represent a select group of leading pensions, asset managers, insurers, endowments, foundations, and other blue-chip institutions exclusively based in the U.S. and select allied countries. The success of this fundraise is a testament to the strategic nature of our investor base and reflects a shared conviction in ACP’s differentiated, purpose-built approach to building companies of national significance.”
Matt Altman, Michael Lustbader, Peter Manos, and David Wodlinger, Managing Partners, Arlington Capital Partners
