Civitas, Paladin Capital to invest in security market

Civitas Group and Paladin Capital Group yesterday said they are partnering on investments in early stage technology companies in the homeland security sector.

The two companies said that they will concentrate their investments in companies with technology offerings in the prevention, protection, response and intelligence areas of security.

Paladin, a private equity firm that has made investments in mid and late- stage companies in the homeland security sector, will take advantage of Civitas' expertise and knowledge in the overall homeland security space. Civitas is a strategic advisory and investment firm.

"Few, if any, firms truly understand the complexities of the security space like Civitas, both nationally and internationally," Michael Steed, managing partner at Paladin, said in a statement. "They know the issues, the trends and the technology."

Last month, Paladin announced that it had created a new fund with commitments of $340 million to invest in businesses that address homeland security needs. It's with this new fund, called Paladin III, that Civitas will help the private equity firm invest in seed and early stage technology companies.

The Paladin III fund already lists investments in seven firms.

The security and technology market remains viable, Mark Shaheen, a managing director at Civitas, told Defense Daily yesterday. Reasons for this include continued government investments in new security technology, commercial sector demand, and continued gaps in the nation's security architecture that can be filled with technology, he said.

Paladin also has another homeland security fund with $235 million in private equity. The fund's portfolio lists investments in over 20 companies.