DC Capital holds interim close on $123m fund

The Washington, DC-based buyout firm, which focuses on mid-market contractors to the US government, is looking to grow in size: it is targeting $350m for its second fund, up from the $250m target for its debut fund.

DC Capital Partners 's second fund has held an interim close on $123.4 million, according to a filing with the Securities and Exchange Commission. 
 
The Washington, DC-based private equity firm manages some $66.08 million in assets, according to PEI Research and Analytics data. DC Capital makes control investments in mid-market companies that provide services to the US federal government, focusing on intelligence, information technology, security operations and maintenance, and infrastructure, according to the firm's website.

DC Capital is looking to raise a bigger fund this time around: DC Capital Partners Fund II has a $350 million target, up from the $250 million it raised for Fund I. Fund I held a final close on $203.2 million in 2008, below its $250 million target. It is unclear why the fund raised less than its target. 

DC Capital did not respond to request for comment. 

Fund II previously held a first close on $81.1 million in April, according to PEI Research and Analytics. The fund invested in Fredericksburg, Virginia-based proprietary radio frequency developer QRC Technologies in May for an undisclosed amount. 

Fund I has exited one portfolio company and currently still holds nine portfolio companies. One of the firm's most successful exits from Fund I is the sale of information technology provider National Interest Security Company to IBM in 2010, which garnered the company $180 million, three years after the firm initially invested in the company with $19.6 million. 

Fund I's current portfolio companies include Pittsburgh, Pennsylvania-based government security service provider Michael Baker International and McLean, Virginia-based operational support provider Kaseman.

The firm is currently investing from the two funds, according to PEI Research and Analytics. 
 
Champlain Advisors was a the placement agent for DC Capital Partners Fund II, according to the filing. 

DC Capital was founded in 2007. Thomas Campbell, founder and president of DC Capital Partners, was a co-founder and partner at New York-based Veritas Capital , a decade ago, according to the firm's website. Veritas also invests in service providers for the US government.