private equity

Top Private Equity Firms in Washington, D.C.

Washington, D.C., is home to renowned private equity firms like The Carlyle Group, Arlington Capital Partners, and HCI Equity Partners. These firms drive growth across industries such as defense, healthcare, and technology, fostering innovation and creating lasting value.

PEL admin

28 Dec 2024 • 6 min read

Washington, D.C., renowned for its political and economic significance, is also home to a thriving private equity (PE) industry. These firms play a vital role in shaping industries such as healthcare, technology, and defense, helping businesses scale and succeed.

In this article, we’ll explore the top private equity firms in Washington, D.C., their portfolios, investment focus, and notable contributions.

The Carlyle Group

Founded in 1987, The Carlyle Group is a leading Washington D.C.-based private equity investment firm. As of September 2024, the firm manages approximately $447 billion in assets across various sectors, including aerospace, healthcare, technology, and consumer products.

A significant investment in Carlyle's portfolio is Booz Allen Hamilton, a premier management and technology consulting firm. In 2008, Carlyle acquired a majority stake in Booz Allen's U.S. government consulting business for $2.54 billion, facilitating the separation of its government and commercial operations.

This strategic move enabled Booz Allen to focus on its core competencies, leading to substantial growth and a successful initial public offering (IPO) in 2010. Carlyle's involvement was instrumental in enhancing Booz Allen's operational capabilities and market position.

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Arlington Capital Partners

Arlington Capital Partners, headquartered in Washington, D.C., focuses on middle market private equity investments across sectors such as government services, aerospace and defense, healthcare, and technology. The firm emphasizes transformational growth through strategic acquisitions and operational enhancements.

A notable example of Arlington's investment strategy is the formation and subsequent sale of Polaris Alpha. In 2016, Arlington merged three of its portfolio companies—EOIR Technologies, Intelligent Software Solutions, and Proteus Technologies—to create Polaris Alpha, a provider of advanced technology solutions for defense and intelligence clients.

Under Arlington's ownership, Polaris Alpha expanded its capabilities and market presence through additional acquisitions, including Intelesys, Solidyn, and Fourth Dimension Engineering. This growth culminated in the sale of Polaris Alpha to Parsons Corporation in May 2018.

HCI Equity Partners

HCI Equity Partners is a private equity investment firm specializing in lower middle-market investments, particularly in family and founder-owned manufacturing, service, and distribution companies. The firm aims to deploy between $15 million and $75 million per investment, either upfront or over time, focusing on growth-oriented businesses.

A notable investment by HCI Equity Partners is AmerCareRoyal, a leading supplier of disposable products for the food service and retail industries. Under HCI's ownership, AmerCareRoyal expanded its product offerings and market reach through strategic acquisitions and operational enhancements, solidifying its position in the industry.

Potomac Equity Partners

Potomac Equity Partners, established in 2011 and located in Washington, D.C., is a private equity investment firm focused on small to mid-market investments. The firm focuses on sectors such as business services, education and training, healthcare, information services, and software and technology. It seeks companies with enterprise values ranging from $10 million to $150 million, emphasizing control transactions where they can acquire a majority ownership stake.

A notable investment by Potomac Equity Partners is Watermark Solutions, a leading provider of enterprise resource planning (ERP) business solutions, technology, and hosting services. In April 2023, Potomac Equity invested in and partnered with Watermark to accelerate its growth and expand its service offerings.

Subsequently, in August 2023, Watermark merged with Synergy Resources, creating WM Synergy, a prominent player in the manufacturing IT solutions landscape. This merger exemplifies Potomac Equity's strategy of fostering growth through strategic partnerships and operational enhancements.

DHS Ventures & Holdings

DHS Ventures & Holdings, headquartered in Washington, D.C., is a private equity and venture capital firm specializing in investments across various sectors, including energy, technology, and healthcare. The firm focuses on projects that promote the public good, aiming to create value through strategic investments and operational enhancements.

A notable investment by DHS Ventures & Holdings is the acquisition of Triton Oil Ltd., a leading integrated oil refinery in Saudi Arabia. This transaction, valued at $780 million, represents one of the region's largest acquisitions in the oil and gas markets.

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The Halifax Group

The Halifax Group, founded in 1999, is a private equity firm that partners with managers and entrepreneurs to invest in lower middle-market businesses. The firm focuses on sectors such as health and wellness, outsourced business services, and franchising, typically targeting companies with enterprise values between $100 million and $300 million.

A notable investment by The Halifax Group is The Liberty Group, a leading provider of staffing and executive search services to the multifamily residential real estate industry. In June 2022, Halifax invested in The Liberty Group, partnering with its management team to support the company's growth and expansion.

Let’s Recap

Washington, D.C., is home to several influential private equity firms that drive growth and innovation across critical sectors such as defense, healthcare, and government services. These firms are known for their strategic investments, operational expertise, and ability to create lasting value.

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With global perspective (incl. US, EU and UK) and special focus on regions like the Middle East, Africa, Pan-Asia, and Central and Eastern Europe, Private Equity List provides vital info on investors, such as how much they invest, what regions and industries they're interested in, and how to contact key team members. This means you get everything you need to find, check out, and reach out to potential investors for your project. We also pay attention to early stage founders.

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Our team, experienced in financial services and committed to helping businesses and entrepreneurs, keeps adding around 300 new companies to our database every month. This effort has made us a reliable source for anyone looking to find investment in markets that don't get enough attention. Check out Private Equity List to begin searching for investors.

Frequently Asked Questions

What is private equity?

Private equity involves investing capital in private companies or taking public companies private with the goal of improving operations, driving growth, and achieving higher returns.

How does private equity benefit companies?

Private equity firms provide companies with capital, strategic guidance, and operational expertise, enabling them to scale, enter new markets, and improve efficiency.

What is a private investment company?

A private investment company is an entity that pools funds from a select group of investors to acquire and manage assets. Unlike public investment vehicles, these companies are typically exempt from regulatory registration and cater to accredited investors who are expected to have the financial expertise to understand and manage investment risks.

What is a private equity fund?

A private equity fund is a collective investment vehicle managed by a private equity firm. It raises capital from institutional and high-net-worth investors to invest in private companies or acquire public companies to take them private. The goal is to enhance the companies’ value through strategic and operational improvements, ultimately achieving profitable exits via sales or IPOs.

What are the top Washington D.C. private equity firms?

Washington, D.C., is home to prominent private equity firms such as The Carlyle Group, known for managing over $380 billion in assets across sectors like healthcare and aerospace. Arlington Capital Partners specializes in middle market investments in government services and defense, while HCI Equity Partners focuses on lower middle market companies in manufacturing and distribution.