Goldman Takes Minority Stake in Arlington Capital

Goldman Takes Minority Stake in Arlington Capital

Goldman Sachs Asset Management (GSAM) has made a non-voting minority equity investment in Arlington Capital Partners.

Arlington Capital was founded in 1999 and has completed over 90 acquisitions since its inception. Sectors of interest include government-regulated industries and adjacent markets including aerospace & defense; government services; and technology, healthcare, and business services.

The investment in Arlington by GSAM follows numerous limited partner commitments by Goldman Sachs in Arlington’s private equity funds over several decades. The investment was made through GSAM’s Petershill private equity program which was launched in 2007 to acquire minority interests in private equity firms. GSAM’s third Petershill fund closed in February 2018 at an above-target $2.5 billion and the program is currently investing through its $4 billion fourth fund.

GSAM’s investment will have no impact on the day-to-day operations or management of Arlington.

“We are excited to expand our partnership with Goldman Sachs,” said Matt Altman, Michael Lustbader, and Peter Manos, the managing partners of Arlington, in a released statement. “They have an outstanding reputation within the investment community, and we are privileged that they have chosen to make this strategic minority investment in our platform through the Petershill program. GSAM has a long history of supporting the world’s top-performing alternative asset managers, and we are honored to have their partnership as we continue to grow our firm.”

“Arlington Capital has built a world-class private equity platform, delivering differentiated value to its investors for over two decades,” said Christian von Schimmelmann, co-head of GSAM’s Petershill unit. “Arlington’s expertise within their core sectors affords them a reputation within those industries that creates a true competitive advantage and has enabled them to deliver industry-leading results for their investors.”

GSAM has more than 2,000 professionals across 30 offices worldwide and through its Petershill program invests in private equity management companies. Petershill’s investments include stakes in Clearlake Capital, Francisco Partners, Permira, Accel-KKR, ArcLight Capital Partners, Littlejohn & Co., Riverstone Holdings.

Arlington Capital, based in Chevy Chase, Maryland, is currently investing out of Arlington Capital Partners V LP, a $1.7 billion fund that closed in June 2019.

Evercore was the financial advisor to Arlington Capital and Kirkland & Ellis provided legal services.

© 2021 Private Equity Professional | February 26, 2021

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