Capitol Meridian Partners closes $1.9 billion second fund at hard cap

Capitol Meridian Partners raised $1.9 billion for Fund II, topping its target by 50% and drawing more than 60 institutional investors. The Washington-based private equity firm is using the new capital to back national security, defense and commercial aviation businesses at the intersection of government and commercial markets.

Why it matters: - Capitol Meridian Partners’ oversubscribed close signals strong investor demand for private capital focused on national security, defense and commercial aviation. - The $1.9 billion fund gives the Washington-based firm more firepower to back founder-led companies operating at the intersection of government and commercial markets. - Nearly 90% of Fund I investors recommitted to Fund II, a strong vote of confidence in the firm’s first fund and strategy.

What happened: - Capitol Meridian Partners raised $1.9 billion for Capitol Meridian Fund II, L.P. - The fund exceeded its target by 50% and hit the hard cap. - Fund II was anchored by $1.8 billion in institutional limited partner commitments. - Approximately $100 million came from affiliates of Capitol Meridian Partners. - More than 60 institutional investors committed capital to the fund. - The investor base was a supermajority from the United States.

The details: - Capitol Meridian Partners invests at the nexus of government and commercial markets. - The firm focuses on national security, defense and commercial aviation. - Founder Brooke Coburn said the size and speed of Fund II reflect the market opportunity, the strength of the Fund I portfolio, the firm’s Operating Partners and the team’s experience. - Founding Partner Adam Palmer said geopolitical shifts have increased the need for private capital in national security and defense. - Palmer said CMP uses a founder-friendly approach that helps management teams build businesses and create value. - CMP’s Operating Partners include Tiffanny Gates, Dennis Liberson, Ryan McCarthy, Raanan Horowitz, Curt Uehlein, Jackie Roberts, Niloofar Razi Howe and Brian Hobbs. - The limited partner base includes pension funds, endowments and foundations, fund-of-funds, insurance companies and families. - Kirkland & Ellis LLP served as fund counsel. - Jefferies served as advisor and global placement agent. - Capitol Meridian Partners is based in Washington, DC. - The firm says it has more than $3 billion in assets under management. - Capitol Meridian Partners was formed in 2021. - The firm says its current Fund I has nine portfolio companies and a 10th under contract for purchase. - The majority of Fund I portfolio companies were founder-led when CMP invested. - The firm’s website is more information. - Capitol Meridian Partners also maintains a LinkedIn page.

Between the lines: - The fast fundraising and high re-up rate suggest institutional investors are leaning into strategies tied to defense, government technology and other mission-critical sectors. - CMP’s emphasis on founder-friendly investing appears designed to appeal to management teams in industries where operational expertise and long sales cycles matter. - The firm’s network of Operating Partners points to a hands-on model that blends capital with sector-specific operating help.

What’s next: - CMP is expected to deploy Fund II into companies across national security, government technology, defense and commercial aviation. - The firm will likely continue using its Operating Partner network and active management engagement strategy to support portfolio growth and value creation. - Fund II’s expanded scale gives CMP room to pursue larger and more numerous investments than Fund I.