Stumble It!
Paladin Capital Group: Homeland Security Plays
Overview:
Founded in 2001, Washington DC based Paladin Capital Group is a multi-stage private equity fund that focuses on investments that toughen the country's critical infrastructure. Current deal values range from US$5 to US$25 million and the firm has more than US$980 million under management across multiple funds including the Paladin Capital Partners fund (launched in 2001 with US$208 million), the Paladin Homeland Security Fund (launched in 2004 with the US$235 million), and the Paladin III fund launched in 2007. Sectors of focus for its latest fund cover critical infrastructure and homeland security elements such as mesh networks, IT services, data storage, business process software, network management software, detection, biometrics, search software, electronic/network hardware, alternative energy & clean energy technologies, network security, communications interoperability & reconstruction, biological/chemical/radiological remediation, protective equipment, and asset tracking & container security. Key criteria for investment include having proven technologies with commercial and government application (dual use), a strong team, industry relevance, a proven record, high growth with meaningful market opportunities, a relevant Board and customers, potential for industry leadership/top tier status, multi-stage/expansion capital focus, and clear exit strategy.
Management Team:
Michael R. Steed (Co-Founder & Managing Director) provides management oversight for Paladin Capital’s operations and investments and is responsible for the firm’s strategic direction while Mark A. Maloney (Co-Founder, Managing Director, & Chief Compliance Officer) is responsible for business development and client servicing activities, provides strategic direction, and assistance with identifying and securing new business opportunities. Other key Paladin Capital figures include:
Dr. Alf L. Andreassen, Managing Director - Formerly with Bell Labs, AT&T Solutions, and the National Security Agency Advisory Board).
Colin H. Bryant, Vice President - A founding member of The Vigilant Investors Fund.
Dr. H. Lee Buchanan, Venture Partner - The former Assistant Secretary of the Navy for Research, Development and Acquisition, and Deputy Director of the Defense Advanced Research Agency in the role of Chief Operating Officer for the central Research and Development organization for the Department of Defense.
Dr. Paul Conley, Vice President - Over 15 years of technology R&D and venture-backed company operating experience after a career with the Los Alamos National Laboratories.
Philip Eliot, Principal - Formerly with Core Capital Partners and the FBR Technology Venture Partners.
Frank J. Hanna, Jr., PCPF Investment Committee Member - The former CEO of Worldwide.
Niloo R. Howe, Managing Director - Formerly with Zone Ventures and McKinsey & Co.
Mike Lyons, Venture Partner
Lt. General Kenneth A. Minihan, Managing Director - United States Air Force (Ret.), the former Director of the National Security Agency and Defense Intelligence Agency.
Michael J. Moniz, Managing Director - President and Chief Executive Officer of Circadence Corporation.
William J. Mulrow, Managing Director - Director with Citigroup Global Markets, and the former Managing Director of Rothschild and Donaldson, Lufkin and Jenrette.
E. Kenneth Pentimonti, Principal - Formerly with JPMorgan Chase
Harold F. Brown, Special Limited Partner - Formerly with CalPERS.
Strategic Advisory Group:
The Strategic Advisory Group is chaired by The Honorable R. James Woolsey , the former Director of the Central Intelligence Agency. Other members include:
Dr. Paul Bracken - Professor of Management and of Political Science at Yale University.
Richard L. Cirigliano - Vice President of Platform Technologies, Product Line Division, of Oracle Corporation.
The Civitas Group LLC - A strategic advisory firm serving the homeland and national security markets.
Dr. Craig F. Feied - Director of Informatics for Emergency Services at EMC Medical & MedStar Health.
Bran Ferren - The former President of Research & Development and Creative Technology for Walt Disney Imagineering.
The Honorable Winston H. Hickox - The former Secretary of the California Environmental Protection Agency.
Dr. Joshua Lederberg - The former President of The Rockefeller University.
The Honorable Arthur L. Money - The former Assistant Secretary of Defense for Command, Control, Communications and Intelligence.
Admiral Joseph W. Prueher - United States Navy (Ret.), the former Ambassador to the People’s Republic of China.
The Honorable Togo D. West, Jr. - A former senior official in the Ford, Carter, and Clinton administrations.
Portfolio:
Paladin Capital’s investment portfolio is structured in the form of three funds:
The Paladin III fund invests in small and medium sized companies providing solutions that protect, defend, cope with, or recover from threats to the country's critical infrastructure and homeland security. Investments include Adapx , Digital Bridge Communications , Initiate , Luminus Devices , Renewable Energy Products , Royalty Pharma , and Unitrends .
The Paladin Homeland Security Fund (closed in 2004 with US$235 million) has invested in 22 companies providing products or services to the homeland security market. Investments include AgION Technologies , Application Security , Arxan Technologies , ClearCube Technology , CloudShield , Command Information , CounterStorm , Courion , Crossbow , Digital Signal , Glasshouse , Greater Ohio Ethanol, Iptivia , KSR , Nexidia , OQO , Orchestria , Oryxe Energy , Previstar , SafeView, and VistaScape .
The Paladin Capital Partners Fund (closed in 2001 with US$208 million) is invested in 8 small and medium sized companies, including Accubuilt , AgION Technologies , ClearCube Technology , Cogent Communications , CompuCredit Corporation , FPMI Solutions , Royalty Pharma , and SOA Software .
The Bottom Line:
With a former CIA chief as the Chairman of its Advisory Group, an all-star cast of executives and advisers, and two funds focused on companies that provide products and services with homeland security applications (and also happen to be in hot new sectors such as biometrics and alternative industry), Paladin Capital mixes defense with innovation - making it a firm to watch.
Contact Information:
Paladin Capital Group
2001 Pennsylvania Avenue NW
Suite 400
Washington, D.C. 20006
Phone: (202) 293-5590
Fax: (202) 293-5597
Website: http://www.paladincapgroup.com