Capitol Meridian Partners has closed its second private equity fund with $1.9 billion in commitments, exceeding its original fundraising target by 50% and reaching the vehicle’s hard cap. The fund is focused on investments spanning national security, defense, government technology and commercial aviation.
Capitol Meridian Fund II received approximately $1.8 billion from institutional limited partners and roughly $100 million from affiliates of the firm. A hard cap represents the maximum amount of capital that a private investment fund is permitted to accept.
Nearly 90% of investors in Capitol Meridian’s first fund returned for Fund II. The new vehicle attracted commitments from more than 60 institutional investors, with a majority based in the United States.
The limited partner base includes pension funds, endowments, foundations, insurance companies, funds of funds and family investment organizations. Capitol Meridian said the diversity of the investor group reflects demand for strategies connected to government and commercial markets.
Fund II is approximately twice the size of the firm’s first fund and was raised in roughly one-quarter of the time. Capitol Meridian attributed the faster fundraising process to the performance and development of its first portfolio, its operating partner network and broader interest in national security investments.
The firm plans to invest in companies that serve government customers while also addressing commercial markets. These businesses may provide defense systems, government technology, aviation products or other services that can benefit from increased private investment and operational support.
Capitol Meridian uses a founder-friendly investment approach centered on active collaboration with management teams. The firm seeks to provide strategic resources, sector relationships and operational expertise in addition to capital.
The firm’s eight operating partners are Tiffanny Gates, Dennis Liberson, Ryan McCarthy, Raanan Horowitz, Curt Uehlein, Jackie Roberts, Niloofar Razi Howe and Brian Hobbs. Their backgrounds span national security, technology, operations and other specialized fields relevant to Capitol Meridian’s portfolio.
Capitol Meridian was founded in 2021 and manages more than $3 billion in assets. Its first fund currently includes nine portfolio companies, with a tenth business under contract for acquisition.
Most of the Fund I companies were founder-led when Capitol Meridian invested. The firm said this experience supports its strategy of partnering with entrepreneurs and management teams to expand businesses serving complex government and regulated markets.
Kirkland & Ellis served as legal counsel for Fund II. Jefferies acted as adviser and global placement agent.
KEY QUOTES:
“We’re grateful for the support and confidence of our current and new investors. Doubling the size of our first fund in one-quarter the time speaks to the tremendous market opportunity, the strength of our Fund I portfolio, a remarkable bench of Operating Partners, and the deep experience and focus of our team.”
Brooke Coburn, Founding Partner of Capitol Meridian Partners
“The swiftly changing geopolitical climate has heightened the need for private capital to help the national security and defense sectors stay ahead of a variety of evolving threats.”
“CMP is honored to invest in and support the national security mission of the U.S. and our allies through a founder-friendly approach that helps management teams build their businesses and create value.”
Adam Palmer, Founding Partner of Capitol Meridian Partners
