An article in the Washington Post gives us an update on new defense PE entrant FedCap Partners. FedCap is led by the husband-and-wife team of the former co-founder of the investment banking firm the Windsor Group, and former chief of marketing at SI international. FedCap targets minority investments in small, tehcnology firms serving the Defense and Government Services sector.
The firm has been ramping up its investments, announcing late last month it has acquired Point One, an Arlington cybersecurity business. FedCap has also made minority investments in Fairfax-based Global Analytic Information Technology Services, an information technology business focused on the Energy Department, and Fredericksburg-based IntelliWare Systems, which offers national security advisory services. On Friday, it said it had made a minority investment in Global Resource Solutions, a defense contractor with offices in Washington state and Alexandria.
I have expressed some skepticism before about the minority investment approach. But in 18 months FedCap has closed on 4 transactions after raising $30m in capital, which they say will be fully deployed in the next 6 months. So let's watch for the exits.