Arlington Preps Third Fund; Target Seen At $700M-$750M

Washington, D.C.-based Arlington Capital Partners, which targets companies in heavily regulated markets, is readying fundraising materials for its third fund, according to a source familiar with the situation.

No official target has been announced, but limited partners expect a goal in the ballpark of $700 million to $750 million. Arlington Capital Partners I LP, raised in 1999-2000, had $452 million in commitments; six years later, the firm raised $585 million for Fund II. Credit Suisse will place the new fund, replacing the prior placement agent, UBS

This year the firm invested in Virgo Holdings, a trade show and conference service provider, Consolidated Precision Products, a supplier to the defense industry, and Sandy Bay Machine, an add-on to the firm’s defense and aerospace components and systems platform. In February the firm sold SECOR International, its consulting and compliance business, to Stantec Inc.

Arlington Capital Partners did not return calls for comment. The firm got its start in 1999, founded by Jeffrey Freed and Robert Knibb.