FedCap makes investment

In March of last year I reported on the stand-up of a new fund called FedCap Partners, led by Rick Knop and Leslee Belluchie. FedCap intends to make minority investments of $1-5M in small companies in the defense & government services/technology sector, and I wondered how exactly this would work, remarking: 

"From the description above it is hard to judge exactly what they are trying to do. Minority stakes in small businesses? I can't see the exit there, but FedCap maybe has something figured out."

Since then they have filled out their website and made an investment in Intelliware Systems, a N. Virgina based firm providing engineering & technical services to Government customers. Details in the press release here. Intelliware CEO Dick Barnett says:

Their investment will allow us to enhance our services and solutions in support of the customers’ mission through acquisition, strategic hiring, and back office upgrades. Because FedCap is a minority investor, our employee shareholders of IntelliWare will retain control of the Company and day-to-day operations.

Let's watch. Just barely filed under the 'buyout' category.