Private equity firm Kohlberg is flipping the switch on its engineering services investment, agreeing to sell ENTRUST Solutions Group to Leidos Holdings Inc. (LDOS) for roughly $2.4 billion. Not a bad payday for a six-year hold.

The deal, announced this week, is expected to wrap up in the second quarter of 2026. Kohlberg's got a full advisory team on deck: Houlihan Lokey and Perella Weinberg Partners are handling the financial side, Ropes & Gray is covering legal matters, and KPMG is managing accounting duties.

Here's the backstory: Kohlberg originally scooped up ENTRUST back in 2019, betting on the consulting and engineering services platform's potential. The firm executed a minority recapitalization in 2023, and over the past six years, ENTRUST has been on a growth tear. The company expanded its geographic reach, bulked up its service offerings, grew its customer base through both organic growth and strategic acquisitions, and scaled its workforce and operational infrastructure.

"Our collaboration with Kohlberg and resulting scale has strengthened our ability to serve customers and will enable us to continue strengthening North America's critical power infrastructure for years to come," said Adam Biggam, ENTRUST's CEO.

Kohlberg focuses on health care and services companies and manages approximately $17 billion in assets as of September 30, 2025.