Paladin closes third homeland security fund on $340m

The Washington DC-based firm, founded in 2001, invests in companies that focus on various aspects of homeland security.

Paladin Capital Group, a homeland security-focused private equity firm, has closed its third fund on $340 million (€235 million), above the firm’s initial target of $300 million.

Washington DC-based Paladin launched the fund last year and already has invested $67 million in eight companies, including Adapx, which makes digital pen and paper products; Digital Bridge Communications, which provides wireless services to consumers in underserved, rural areas; and Luminus, which develops light sources for high definition televisions, video projectors and avionics displays.

Paladin III is the firm’s third fund that invests in companies whose services and products address homeland security needs. The fund specifically focuses on alternative energy, bio-fuels and infrastructure protection, according to the firm.

Many of the investors in Paladin III are returning limited partners, the firm said in a statement. Paladin has more than $980 million under management across multiple funds and 31 portfolio companies.

Paladin, founded in 2001, closed its prior fund in 2004 on $235 million. The firm has a wealth of homeland security experience behind it, including James Woolsey, former director of the Central Intelligence Agency, Kenneth Minihan, former director of the National Security Agency, and H. Lee Buchanan, former assistant secretary of the Navy for research, development and acquisition.