Arlington Capital Review: Private Equity Investment Focus, Portfolio & Deal Criteria

In-depth review of Arlington Capital: investment thesis for aerospace, defense, and government services companies, portfolio companies, typical deal sizes, and how to prepare for investment.

Key Takeaways

•Focus on Technology, Manufacturing companies
•Investment range: $50M-$250M in equity
•Based in United States
•Control-oriented investments
•Growth equity focus

Notable Portfolio Companies

Aerospace & Defense Company A — Aerospace — Defense contractor
Technology Solutions Inc — Defense Technology — Advanced sensors
Government Services Corp — Government Services — Federal contractor
Precision Manufacturing LLC — Aerospace — Aircraft components
National Security Systems — National Security — Homeland security
Defense Electronics Co — Defense Technology — Radar systems

What Arlington Capital Looks For

Clearance access — Ability to hold security clearances for classified work
Contract positioning — Strong positioning on defense contracts with good past performance
Proprietary technology — Differentiated technology that provides competitive advantage
Long-term relationships — Established relationships with prime contractors and government agencies
Growth potential — Pathways to growth through program wins and contract expansions

Pro Tip

Arlington Capital has deep expertise in navigating the complex regulatory environment and understands the unique challenges of government contracting. They value management teams with security clearances and proven track records.

How to Connect With Arlington Capital

Document Security Clearances — Ensure key personnel have appropriate security clearances and document your ability to handle classified work.
Show Contract Performance — Document past performance on government contracts with strong ratings and customer satisfaction.
Demonstrate Technology Differentiation — Highlight proprietary technology and IP that provides competitive advantage in defense applications.
Build Prime Contractor Relationships — Demonstrate relationships with prime contractors and understand the subcontracting landscape.

Aerospace and defense companies need sophisticated financial infrastructure for PE investment

Contract Metrics — Contract backlog tracking, Revenue recognition by contract, Margin analysis by program, Billable rate analysis
Compliance Infrastructure — DCAA compliant accounting, Cost accounting standards, Internal control documentation, Earned value management

How Eagle Rock Helps

We help aerospace and defense companies prepare for PE investment by building financial infrastructure that meets government contracting requirements and demonstrates contract performance.

Pro Tip

Demonstrate a strong management team with equity ownership alignment.

Frequently Asked Questions

What industries does Arlington Capital focus on?

Arlington Capital primarily invests in Technology, Manufacturing. The firm seeks companies with strong market positions and clear growth trajectories.

What size companies does Arlington Capital acquire?

Arlington Capital typically invests $50M-$250M in equity, targeting companies with enterprise values in the lower to middle market range.

What is Arlington Capital's typical investment size?

The firm's equity investments generally range from $50M-$250M, positioning them as active investors who can provide meaningful capital for growth.

How long does Arlington Capital's due diligence process take?

Due diligence timelines vary by deal complexity, but Arlington Capital typically conducts thorough financial, operational, and market due diligence over several weeks to months.

What should I prepare before engaging with Arlington Capital?

Prepare three years of audited financials, detailed market analysis, management team bios, growth plans, and a clear vision for how the partnership would create value.

How does Arlington Capital work with portfolio companies?

Arlington Capital takes a partnership approach, working closely with management teams on strategic initiatives, acquisitions, and operational improvements.

Ready to Connect With Arlington Capital?

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This article is part of our Private equity firms | Eagle Rock CFO guide.