Bates launches Potomac Equity

Washington, DC is getting a new PE firm.

John Bates is no longer with Arlington Capital, the Chevy Chase, Md.-based private equity firm where he served as a partner since 2000. According to an email to friends and colleagues, he's planning to launch a new platform called Potomac Equity Partners.

My understanding is that Washington, D.C.-based Potomac will focus on small-to-mid-market opportunities in a variety of sectors, including business services, education, healthcare and software. While with Arlington, Bates' portfolio companies included BrightStar Education Group and PlattForm Advertising Inc.

No word yet on who else (if anyone) is working on Potomac, or how much money the nascent firm is seeking to raise. Bates, a former M&A banker with Lehman Brothers, declined to comment when reached via cell phone.

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