SEPTEMBER 22, 2008 – WASHINGTON, D.C. – Private equity firm Paladin Capital Group today announced it has closed its third fund, Paladin III L.P., with equity commitments of $340 million.

The fund was raised against an initial target of $300 million, underlying investor confidence in Paladin and its reputation as a national leader in homeland security investing. Paladin has over $980 million under management across multiple funds and 31 portfolio companies.

"Exceeding our original target underlines the continued confidence in our ability to invest in and help manage companies that contribute to our nation’s security," said Michael Steed, a Founder and Managing Partner of Paladin.

The Washington, D.C. based firm said many of the investors in Paladin III, including top-tier public pension funds, corporate and jointly-trusteed funds, and high-net worth individuals are repeat Limited Partners.

"Paladin’s investors are confident in our highly-regarded team of professionals and our ability to attract best-of-breed companies with excellent growth opportunities in this vital space," said Managing Director Lt. General (Ret.) Kenneth A. Minihan. "We look forward to providing the necessary expansion capital and value added assistance to all of our portfolio companies to maximize their future potential."

Paladin’s leadership and strategic advisors are comprised of high-level former government executives and private sector experts with a proven track record of financial expertise, national security experience and specialized technical competence. Collectively, Paladin’s professionals have more than 100 years of combined experience and have completed more than 150 transactions across multiple industries.

Paladin has had an excellent start in deploying the fund’s investment strategy, with $67 million invested in eight new portfolio companies. Paladin’s team will continue to focus on alternative energy, bio-fuels and critical infrastructure protection, among other industries that support its core expertise in homeland security. Paladin III investments include: Adapx; DigitalBridge Communications; Luminus Devices; Initiate; Quantalife, Renewable Energy Products; Royalty Pharma; and Unitrends.

Founded in 2001, Paladin Capital Group is a leading multi-stage private equity firm providing capital for growing companies focused on commercial and government markets, and offering products, services and technologies that address homeland security needs and enhance critical infrastructure world wide.

Contact:

Mark A. Maloney, Managing Director

http://www.paladincapgroup.com