Two longtime members of Arlington Capital Partners have left the firm to form the new Washington Equity Partners. Bob Knibb and Jesse Liu departed earlier this year to form the new sector-focused private investment fund aimed at investing in aerospace and defense, industrial and advanced manufacturing and software and technology. The team also includes Hagen Saville, who was the co-founder and CEO of MCG Capital in Arlington.
"Being a sector specialist certainly gives you a leg up," Saville said. "Those areas in Washington, D.C., are obviously staples here in Washington."
McLean, Va.-based Washington Equity looks to take a 50-plus percent equity stake in each investment and aims to invest between $5 million -$50 million at a time. Saville says the three partners do not plan on raising a fund at this time, instead relying on their own capital and relationships with other investors for at least the first year.
"The ability to raise capital on a deal by deal basis does have its advantages," Saville said. "Today, investors are very interested in looking at a deal and saying yes or no."
Both Knibb and Liu each have over 10 years of experience in investing in middle market aerospace and defense, government services and technology and healthcare companies. Liu spent 13 years at Arlington Capital, and Knibb co-founded Arlington Capital in 1999 and stayed with the fund for 17 years.
Washington Equity Partners has already made its first investment, acquiring cybersecurity company Femme Comp, Inc., based in Chantilly, Va., in August 2016.
