Blue Delta Capital Partners, an investment firm focused on the government services market, is growing its team and seeking additional opportunities as the market reshapes.
The firm was formed in 2009 by Mark Frantz, who previously worked at In-Q-Tel, Carlyle Venture Partners and in the White House, and Kevin Robbins, who had worked at SRA International. Both said they saw an opportunity for a firm willing to make investments and provide advice to smaller government services firms. They also envisioned a firm that wouldn't seek control of the company.
At the time, with the recession underway, Robbins said he saw small companies disproportionately damaged and unable to access capital. They quietly got the group up and running, raising money for individual investments from former chief executives and other individuals.
By 2014, the firm had established a formal fund and had several key investments under its belt. For instance, Blue Delta in 2010 invested in classified space and satellite company KTSi, which was acquired by Scitor in 2013. Scitor was later purchased by Science Applications International Corp.
Additionally, Blue Delta began in 2011 to back 42Six, a big data analytics company, which was acquired in 2012 by Computer Sciences Corp.
This month, Blue Delta announced it has added two general partners: Dave Keffer, the former chief financial officer of CSRA, which was acquired by General Dynamics earlier this year, and Phil Nolan, the former CEO of Stanley and Camber who had previously been an advisory board member and venture partner at Blue Delta.
Frantz told Inside Defense the firm is now taking on larger investments, but still seeking excellent management teams focused on technology.
"Long term, I'd love for us to build a company that you could actually take public," he said.
Even as the defense budget likely flattens, "we like our opportunity to work with the best teams and take market share in the next three years," Frantz added.