Technology and services

Supporting investments in the digital transformation of the US defense and government services sector

Macquarie Capital has supported Capitol Meridian Partners on five transactions since its founding in 2021

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Sector Technology and services
Sub-sector Defence and government services
Location Americas

Opportunity

Founded in 2021, Capitol Meridian Partners is a specialist investment firm which focuses on partnering with and growing businesses that serve the US Government.

The organisation targets opportunities across complex and highly regulated sectors including aerospace and defense, government services and government software, technology and communications. Macquarie Capital has worked alongside Capitol Meridian Partners on five transactions since its inception in 2021. 


Approach

In July 2022, Macquarie Capital supported Capitol Meridian Partners’ acquisition of Logistics Management Institute (LMI), a provider of digital and analytical solutions, management advisory services and technology-enabled logistics services to the federal government.

Macquarie Capital leveraged its flexible balance sheet capabilities and deep expertise in the defense and government services sector to act as lead direct lender as well as exclusive financial advisor for the acquisition. 

Following the initial investment, Macquarie Capital led the financing for two add-on acquisitions to expand LMI’s platform, including Synaptech, a provider of digital engineering, modeling and simulation software for the national security and space industries, and JJR Solutions, a provider of low-code, cloud-based applications for customers in the government services space.

In November 2023, Capitol Meridian Partners tapped Macquarie Capital once again to act as lead lender in the acquisition of its newest platform investment, Clarity Innovations, which provides advanced data and cyber analytics services and software to the US national security community. Following this transaction, Macquarie Capital acted as exclusive financial advisor to Capitol Meridian and Clarity in Clarity’s merger with Chameleon Consulting Group in June 2024. Macquarie Capital Principal Finance also provided financing to support the transaction. Clarity and Chameleon’s combined capabilities will create a vanguard of next generation systems and cyberspace products and services to the US Department of Defense and Intelligence Community.

Outcome

Capitol Meridian brings long-duration capital, industry expertise, and its deep network of relationships with veteran operators, advisors, and partners to enhance each platform’s customer offerings across the defense and government services sectors.

The strategic acquisitions also further enhance Capitol Meridian’s credentials in the government services and technology space and position the firm to continue to drive the digital transformation happening across the government sector.

The government sector continues to transform and consolidate. As a sector-focused, specialist investor with a deep understanding of the complex government services landscape, Capitol Meridian Partners is well-positioned to capitalize on this transition."

Jeremy Parker
Senior Managing Director
Macquarie Capital 

Macquarie’s Aerospace, Defense & Government Services (ADG) Group was established in 2016 and has supported over $US17 billion in financing transactions in addition to advising on over $US22 billion in M&A advisory transactions.

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