Bethesda, Maryland, has emerged as a prime location for private equity firms, attracting top-tier investment groups like American Capital, Arlington Capital Partners, and Blue Delta Capital Partners. These firms leverage the region’s strategic proximity to Washington, D.C., and robust talent pool to drive innovative investment strategies across diverse sectors. For professionals seeking to connect with like-minded leaders in private equity and M&A, join our thriving community at alexejpikovsky.com/community.
American Capital (acquired by Ares Capital Corporation)
Investment Style: American Capital, prior to its acquisition by Ares Capital Corporation, focused on middle market private equity, leveraged finance, and structured products. They aimed at value creation through operational growth and strategic acquisitions.
Portfolio Companies: Portfolio companies included Service Experts, American Driveline Systems, and Airvana.
Founding Date: 1986
Number of Investment Professionals: Over 200 at the time of acquisition
Assets Under Management: Over $20 billion before acquisition
Key Investment Professionals and Contributions:
- Malon Wilkus, Founder and CEO: Led the strategic growth and expansion of American Capital, positioning the firm as a leader in middle-market investments.
- Tom McHale, CFO: Played a crucial role in financial management and capital strategy that bolstered the firm’s growth trajectory.
Recent Exits: Exited its position in Airvana via a sale to a consortium of private equity firms before the merger with Ares.
Recent Acquisitions: Invested in Service Experts, a leading HVAC service company, shortly before the acquisition by Ares.
Office Locations:
- Bethesda (Headquarters): Bethesda, Maryland
Website: www.arescapitalcorp.com
Quote: “American Capital’s strategy has always been about identifying strong growth opportunities and executing on a strategy that creates lasting value for our investors.” – Malon Wilkus, Founder and CEO
JMI Equity
Investment Style: JMI Equity focuses on growth equity investments in leading software companies. Their investment strategy emphasizes partnering with entrepreneurs and management teams to drive growth and build value.
Portfolio Companies: Portfolio companies include Seismic, Arena, and PointClickCare.
Founding Date: 1992
Number of Investment Professionals: Over 40
Assets Under Management: Approximately $6 billion
Key Investment Professionals and Contributions:
- Harry Gruner, Founder and Managing General Partner: Focuses on software investments and has led many of JMI’s successful exits.
- Matt Emery, General Partner: Specializes in business software and healthcare IT investments.
Recent Exits: Exited its investment in Adaptive Insights following its acquisition by Workday.
Recent Acquisitions: Invested in Timely, a software company focused on time management.
Office Locations:
- Baltimore (Headquarters): Baltimore, Maryland
- Additional Offices: San Diego, California
Website: www.jmi.com
Quote: “Our commitment is to partner with exceptional management teams to help them scale their businesses and achieve transformative results.” – Harry Gruner, Founder and Managing General Partner
Arlington Capital Partners
Investment Style: Arlington Capital Partners focuses on middle-market investment opportunities in regulated industries like aerospace, healthcare, government services, and technology.
Portfolio Companies: Portfolio companies include Centauri, BlueHalo, and Avalign Technologies.
Founding Date: 1999
Number of Investment Professionals: Over 30
Assets Under Management: Approximately $4.5 billion
Key Investment Professionals and Contributions:
- Malcolm Little, Managing Partner: Specializes in aerospace and defense investments, leading several high-profile acquisitions.
- Michael Lustbader, Managing Partner: Focuses on healthcare and business services sectors, driving portfolio growth and strategic initiatives.
Recent Exits: Completed a successful exit with the sale of Centauri to KBR.
Recent Acquisitions: Acquired Triumph Group’s composites business to expand its aerospace capabilities.
Office Locations:
- Bethesda (Headquarters): Bethesda, Maryland
Website: www.arlingtoncap.com
Quote: “Arlington is dedicated to building industry-leading companies in partnership with our management teams by leveraging our industry knowledge and operational experience.” – Malcolm Little, Managing Partner
Cambridge Information Group
Investment Style: Cambridge Information Group (CIG) is a family-owned investment firm focusing on education, research, and technology companies. They emphasize long-term growth and operational excellence in their investment strategy.
Portfolio Companies: Portfolio companies include ProQuest, Navitas, and MetaMetrics.
Founding Date: 1971
Number of Investment Professionals: Over 20
Assets Under Management: Approximately $2 billion
Key Investment Professionals and Contributions:
- Robert Snyder, President: Guides CIG’s investment strategy and operational improvements across portfolio companies.
- Andy Snyder, CEO: Focuses on strategic acquisitions and partnership development.
Recent Exits: Sold ProQuest to Clarivate.
Recent Acquisitions: Acquired MetaMetrics to enhance its educational portfolio.
Office Locations:
- Bethesda (Headquarters): Bethesda, Maryland
- Additional Offices: New York, New York
Website: www.cig.com
Quote: “Our mission is to create enduring value by building leading information companies that leverage technology and innovation.” – Robert Snyder, President
Blue Delta Capital Partners
Investment Style: Blue Delta Capital Partners is a growth capital firm focused exclusively on the U.S. federal government technology marketplace. Their strategy involves supporting companies that drive mission-critical solutions for government agencies.
Portfolio Companies: Portfolio companies include Decision Lens, IntelliBridge, and Easy Dynamics.
Founding Date: 2009
Number of Investment Professionals: Over 10
Assets Under Management: Approximately $1 billion
Key Investment Professionals and Contributions:
- Phil Nolan, Managing Partner: Focuses on technology investments within government services, leveraging industry expertise for portfolio growth.
- Mark Frantz, Co-Founder and General Partner: Known for strategic growth and scaling of technology-focused ventures within the federal space.
Recent Exits: Exited its investment in ECS Federal following its acquisition by ASGN Incorporated.
Recent Acquisitions: Invested in IntelliBridge, a provider of cloud and data analytics solutions.
Office Locations:
- Bethesda (Headquarters): Bethesda, Maryland
Website: www.bluedeltacapital.com
Quote: “Our focus on the federal technology sector allows us to partner with companies that are making a real impact on national priorities and mission-critical initiatives.” – Phil Nolan, Managing Partner
Grotech Ventures
Investment Style: Grotech Ventures is a venture capital firm focused on early-stage technology companies. They specialize in sectors like IT infrastructure, healthcare IT, and consumer internet, providing strategic support and capital for growth.
Portfolio Companies: Portfolio companies include LogRhythm, Ceros, and Optoro.
Founding Date: 1984
Number of Investment Professionals: Over 15
Assets Under Management: Approximately $1 billion
Key Investment Professionals and Contributions:
- Steve Fredrick, General Partner: Leads investments in enterprise software and cybersecurity sectors.
- Frank Adams, Managing General Partner: Focuses on strategic growth and scaling of high-potential startups.
Recent Exits: Exited its investment in LogRhythm following its acquisition by Thoma Bravo.
Recent Acquisitions: Invested in Ceros, a cloud-based design platform for interactive content.
Office Locations:
- Bethesda (Headquarters): Bethesda, Maryland
- Additional Offices: Tysons Corner, Virginia
Website: www.grotech.com
Quote: “Our experience and deep understanding of the technology landscape allow us to help entrepreneurs build successful and sustainable companies.” – Steve Fredrick, General Partner
AdvisorShares
Investment Style: AdvisorShares specializes in actively managed exchange-traded funds (ETFs). Their investment strategy focuses on innovation and active management to deliver superior returns across various asset classes.
Portfolio Companies: AdvisorShares does not directly invest in portfolio companies but offers a range of ETFs across different sectors.
Founding Date: 2006
Number of Investment Professionals: Over 20
Assets Under Management: Approximately $750 million
Key Investment Professionals and Contributions:
- Noah Hamman, Founder and CEO: Focuses on innovative ETF solutions and strategic partnerships.
- Dan Ahrens, Managing Director: Leads the investment strategy and development of cannabis and thematic ETFs.
Office Locations:
- Bethesda (Headquarters): Bethesda, Maryland
Website: www.advisorshares.com
Quote: “Our mission is to offer investors innovative and actively managed ETF solutions that provide unique exposures and strategies in the market.” – Noah Hamman, Founder and CEO
Walker & Dunlop Investment Partners
Investment Style: Walker & Dunlop Investment Partners focus on value-add and opportunistic investments in real estate and related operating companies. Their strategy is to partner with top-tier operators to create long-term value.
Portfolio Companies: Portfolio investments include multifamily and commercial real estate assets across the U.S.
Founding Date: 2006
Number of Investment Professionals: Over 20
Assets Under Management: Approximately $700 million
Key Investment Professionals and Contributions:
- Sam Isaacson, President: Leads the firm’s strategic growth and investment strategy across real estate sectors.
- David Strange, Managing Director: Focuses on asset management and value creation in real estate investments.
Office Locations:
- Bethesda (Headquarters): Bethesda, Maryland
Website: www.walkerdunlop.com
Quote: “We see opportunities where others may not and leverage our expertise to maximize value for our investors.” – Sam Isaacson, President
ABS Capital Partners
Investment Style: ABS Capital Partners focuses on growth equity investments in business and tech-enabled services, health care, and media and communications sectors. They emphasize partnering with strong management teams for strategic growth.
Portfolio Companies: Portfolio companies include Evolve IP, NS8, and ConnectYourCare.
Founding Date: 1990
Number of Investment Professionals: Over 25
Assets Under Management: Approximately $600 million
Key Investment Professionals and Contributions:
- Phil Clough, Managing General Partner: Leads investments in business services and healthcare sectors.
- Laura Witt, General Partner: Focuses on technology and communications investments and strategic growth initiatives.
Recent Exits: Exited its investment in Sourcefire through its acquisition by Cisco.
Recent Acquisitions: Invested in NS8, a fraud prevention platform.
Office Locations:
- Baltimore (Headquarters): Baltimore, Maryland
- Additional Offices: Chevy Chase, Maryland
Website: www.abscapital.com
Quote: “Our focus is on helping exceptional growth companies reach their potential by providing strategic insights and resources.” – Phil Clough, Managing General Partner
Bethesda’s private equity landscape continues to evolve, offering dynamic opportunities for sophisticated investors and entrepreneurs. These firms play a critical role in reshaping local economic ecosystems, driving value through strategic acquisitions and operational improvements. As the market matures, understanding the nuanced approaches of these firms becomes increasingly important for those seeking successful exits.
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