Skip to content
Subscriber Only

Tainted Past? No Problem

Private-equity fund Veritas thrives by turning around sullied defense contractors

How's this for an investment opportunity? For sale: one defense contractor, linked to congressional bribery scandal, owner possibly facing prison time.

That's Bob McKeon's kind of deal. McKeon is the founder of Veritas Capital, a New York private-equity firm that invests in intelligence and defense contractors. Among the fund's holdings: DynCorp International Inc. (DCP ) in Irving, Tex., whose name was tarnished in the late 1990s when some of its employees in Bosnia became embroiled in a sex trafficking scandal.