MSP: Investing with Searchers in Government Services, Aerospace & Defense

Hi SearchFunder, we wanted to introduce our firm, Mission Support Partners, and connect with searchers in the government services, aerospace, and defense sectors.

Focus: We are looking to invest $100k - $1M minority equity checks into self-funded or traditional search deals across the ADGS sector. Target businesses have < $2M EBITDA, with a focus on growing end markets and high technical capabilities. We would also consider initial raises for sector-focused traditional search funds. US only, nationwide.

Sector Thesis: Over 10,000 businesses, with $1-20M in federal contracts, operate across nearly every subindustry, generating > $150B in aggregate. Within defense and national security, the private sector has become increasingly integral to all phases of the cycle, from R&D to O&M. Despite rising amounts of small business work, growing needs for advanced technology, and a focus on US supply chain resilience, the number of active contractors has declined approximately 50% over the past decade. With business models ranging from machine shops to cybersecurity, there are many specialized niches and end markets to operate in. Complexities such as small business affiliation rules, certifications, customer concentration and regulation keep many generalist buyers out of the smaller end of the market. For the right searchers, this can yield attractive ETA opportunities to acquire small firms and grow them into much needed mid-size prime contractors.

About Us: prior to launching MSP, I’ve invested in LMM PE as an independent sponsor for nearly 10 years, and previously invested in public equities on the hedge fund side. My partner ^redacted‌ brings over 25 years of experience in the federal sector. He acquired Qlarion, a government tech services firm, in a self-funded deal, spent 10 years building it, and successfully exited in 2021 to a PE-backed platform. We have a strong network of industry executives we can connect with as well.

Who We Are Looking For: self-funded searchers, traditional searchers, entrepreneurs, and executives with relevant prior govcon, A&D, military, and/or government experience. The drive to build a business that contributes to the country.

Deal Flow: Reach out on active deals you’d like to discuss. We also see deal flow in the sector that we would like to selectively share and pursue with the right searchers; get in touch if you’re actively searching and would like to discuss further.

Contact: redacted or redacted

Thanks and look forward to connecting.