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DC Capital Partners takes aim at $350 mln fund

  • Firm drew in $125 million in debt deal for portfolio company
  • DC Capital founded by Veritas Capital alumni
  • DC Capital bought Michael Baker for $397 million

Founded by veterans of Veritas Capital Management, DC Capital Partners would continue its focus on companies that provide services and solutions to the federal government. The Alexandria, Virginia-based shop would take its fund off the shelf as fundraising remains challenging, but much more robust compared to conditions during the financial crisis that unwound during the early years of DC Capital Partners.

It was not clear how much DC Capital raised initially. No Form D filings for private equity funds came up under the name DC Capital Partners in a search by Buyouts at the Securities and Exchange Commission’s website for company filings.

Thomas Campbell, founder and president of DC Capital Partners, worked as partner and co-founder at Veritas Capital from 1992 until 2006, according to his profile on the firm’s website. Douglas Lake, Jeffrey Weber and T. Gail Dady, all partners at DC Capital, also worked at Veritas Capital.

Separately, Veritas Capital Management may also be steering toward the fundraising market for its fifth fund.

A call and email to DC Capital Partners by Buyouts were not returned.

The firm lists seven portfolio companies and two realized investments: National Interest Security Co LLC and International Development Solutions LLC.

In April, DC Capital sold a $125 million payment-in-kind toggle note for its engineering portfolio firm Michael Baker, which will pay it a dividend, according to a published report. The PIK deal, which reflects healthy corporate debt markets helping private equity firms extract value from companies, came less than six months after DC Capital completed the $397 million acquisition of Michael Baker Corp through its affiliate, Integrated Mission Solutions.

The merged company, Michael Baker International LLC, had more than 5,000 employees and $1 billion in revenue at the time of the deal’s close in October.