Godspeed Capital Management has finalized an oversubscribed, hard-cap close of Godspeed Capital Fund III LP with $675 million in capital commitments. Godspeed initiated and completed fundraising within two months.
Limited partners in Fund III include both new and existing institutional investors, such as endowments, foundations, health systems, public pension plans, family offices, fund of funds, advisors, and consultants.
Headquartered in Washington, DC, Godspeed Capital makes control investments in North American-based, lower middle-market companies with EBITDA between $3 million and $30 million. The firm primarily targets businesses in the defense and government services sectors. With the close of Fund III, Godspeed has now raised over $1.1 billion in capital commitments since its founding in 2021.
“We are thrilled with the strong support we have received from both existing and new investors for Fund III,” said Douglas Lake, Jr., founder and managing partner of Godspeed Capital. “Their commitment is both a testament to the hard work of the entire Godspeed Capital team and a reflection of their conviction in our proven investment strategy.”
Since its inception, Godspeed has acquired 33 businesses through eight platform investments. “Following the successful close of Fund III, we look forward to continuing to partner with founder- and management-owned businesses operating across the defense and government sectors that have reached an inflection point in their growth trajectory,” added Mr. Lake. “Godspeed Capital’s differentiated, partner-friendly investment approach – bolstered by our core values, deep sector expertise and relationships, growth-oriented playbook, long-term vision, and creative capital solutions – make our firm an ideal partner for management teams seeking to catalyze the next chapter of growth for their companies.”
As an example of this strategy, Godspeed’s portfolio company Special Aerospace Services (SAS)—a Colorado-headquartered space engineering and defense technology platform acquired in April 2024—added Concordia Technologies to its operations last month. Concordia, based in Alabama, provides engineering, modeling and simulation, and rapid prototyping support services for hypersonic weapons and missile defense systems.
This acquisition follows two earlier add-ons for SAS: the May 2024 acquisition of Quintron Systems, a California-based communications technology provider offering consulting, engineering, contracting, and networking and security infrastructure services, and the April 2024 acquisition of Willbrook Solutions, an Alabama-headquartered systems engineering specialist.
Today, SAS operates from its headquarters in Huntsville, Alabama, with four additional facilities across Alabama (1), California (1), and Colorado (2). Key SAS clients include NASA, the Department of Defense, the Missile Defense Agency, U.S. intelligence agencies, the Army Corps of Engineers, government prime contractors, and various companies within the commercial spaceflight sector.
Earlier this year, Godspeed sold two of its platform companies. MOREgroup, a Texas-based provider of architecture, design, and engineering services for education, healthcare, and public architecture clients, was formed in March 2022 and sold to Wind Point Partners in January 2024. Godspeed also divested Stratus, a Pennsylvania-based engineering, architecture, and consulting firm, to Brightstar Capital Partners in July 2024. Stratus was acquired by Godspeed in October 2022.
Lazard served as the placement agent for Godspeed’s Fund III, with Davis Polk & Wardwell providing legal services.
© 2024 Private Equity Professional | November 14, 2024
