Capitol Meridian Partners, a Washington, DC-based firm that invests in companies at the nexus of government and commercial markets, has raised $900 million for its first fund, Capitol Meridian Fund I, L.P.; the fund exceeded its target and hit its hard cap. CMP was founded in 2021 by Adam Palmer and Brooke Coburn, each, 27-year private equity veterans.
CMP Founding Partner Brooke Coburn said, “We are deeply grateful and proud of the blue-chip investor group that came together in support of our inaugural fund. Although CMP is a new firm, investors were drawn to our team’s 80+ years of collective experience investing in our target markets, our deep experience of building value via hands-on engagement and partnership with founders and management teams, and our ability to do larger deals opportunistically because of strong coinvestment appetite from our investors.”
CMP Founding Partner Adam Palmer said, “This is one of the toughest fundraising markets in decades. Nonetheless, capital is available for proven teams with a compelling strategy; we focus on the accelerating adoption of technology in the government and defense markets. Further, our longstanding presence in the Washington, DC market, together with our founder-friendly approach enables us to partner with and support entrepreneurs who are building companies and innovating for their customers.” He added: “We have already completed investments in five platform companies and have a robust pipeline of additional opportunities.”
More than 30 institutional investors committed capital to Fund I, including endowments and foundations, pension funds, fund-of-funds, insurance companies, and family offices.
The CMP Investment Approach:
• Sector Expertise: CMP is a sector-focused, specialist investor. Target markets are opaque, acronym-intensive landscapes with high levels of complexity and expansive layers of regulation.
• Deep Network: CMP brings together investment experience with a network of sophisticated executives and subject matter and value creation experts to drive growth, operational improvements, and value creation.
• Support Management: CMP is an investor, not an operator; CMP supports management teams as they work to build their businesses and create value.
• Significant Limited Partner (LP) Coinvestment: CMP has provided LP coinvestment in a number of investments to date, totaling approximately $300 million.
Fund I Investments:
• Altumint: a technology services company providing public safety and analytical solutions to state and local government customers
• Clarity Innovations: a provider of advanced data and cyber analytics services and software to the U.S. national security community
• LMI Consulting: a provider of technology-enabled management consulting, logistics, and digital & analytics solutions to the U.S. government
• PrimeFlight: a diversified aviation services business
• Project Nimbus: a defense technology business (transaction complete but not yet announced)
Kirkland & Ellis LLP served as fund counsel.
About Capitol Meridian Partners
Capitol Meridian Partners was formed in 2021 to invest at the nexus of government and commercial markets, targeting opportunities where the firm can invest and drive value creation through active engagement with management. The firm draws upon the deep network of industry veterans curated over 27+ years of its principals’ experience in the sector to bring thoughtful strategic resources to each investment opportunity. www.capitolmeridian.com
