Whereas synthetic intelligence continues to dominate the headlines, billions of {dollars} are quietly flowing into different important sectors, significantly defense and government. As optimism grows round a possible decision to the Ukraine battle underneath the brand new U.S. administration, the highlight has shifted to renewing and modernizing the U.S. navy. Buyers view this as a pivotal second to help the subsequent wave of defense-focused innovation.
One main investor on this area is Godspeed Capital, a personal fairness agency focusing on decrease middle-market corporations in protection, authorities providers, and know-how options. As we speak, Godspeed Capital introduced the shut of its third fund, Godspeed Capital Fund III LP (“Fund III”), securing $675 million in complete investor commitments and reaching the fund’s exhausting cap.
Raised in underneath two months, the oversubscribed Fund III drew vital curiosity from high-profile institutional buyers globally. With the addition of Fund III, Godspeed Capital has now raised over $1.1 billion since its founding in 2021, reflecting sturdy confidence in its focused technique.
The fund acquired backing from a various base of latest and returning buyers, together with endowments, foundations, well being methods, public pension plans, household places of work, funds of funds, and advisors—all affirming Godspeed’s deal with progress throughout the protection and authorities sectors.
By way of Fund III, Godspeed Capital plans to proceed its mission of partnering with founders and administration groups throughout protection and authorities know-how. The agency’s technique emphasizes progress by means of operational enhancements, know-how funding, and acquisitions. Since its inception, Godspeed has executed 33 investments and established eight platform companies throughout distinct segments on the intersection of private and non-private sectors. This yr, the agency marked key exits with the gross sales of MOREgroup and Stratus Group, showcasing its profitable monitor file.
“We’re thrilled with the sturdy help now we have acquired from each present and new buyers for Fund III,” stated Douglas T. Lake, Jr., Founder & Managing Companion of Godspeed Capital. “Their dedication is a testomony to the Godspeed crew’s efforts and their confidence in our method.”
With Fund III now closed, Lake added, Godspeed Capital appears ahead to continued partnerships with founder- and management-owned companies positioned for progress throughout protection and authorities sectors. “Our partner-centered method, grounded in core values, sector experience, and a long-term imaginative and prescient, makes us a super associate for groups aiming to speed up progress.”
Lazard served because the unique placement agent for Fund III, whereas Davis Polk & Wardwell LLP offered authorized counsel.
Based in 2020 by managing associate Douglas T. Lake Jr., the Washington, DC-based Godspeed Capital focuses on natural progress and acquisition methods in decrease middle-market U.S. corporations throughout the protection, authorities, and tech sectors. Different key members of Godspeed Capital’s funding crew embody Nathaniel T. G. Fogg, serving as Companion; Cameron Terry, James Reid, and Jake Sliman, every holding the function of Principal; and Alex Gainey, who serves as Affiliate.
Godspeed’s typical investments goal corporations producing $3 million to $30 million in EBITDA, with the flexibleness for bigger transactions by means of strategic co-investments. The agency makes a speciality of management buyouts, buy-and-build methods, company carve-outs, and particular conditions, working with growth-driven corporations to offer adaptable capital and operational experience.
