Bangladesh’s current national strategy emphasizes the importance of institutional strengthening for local ownership. Further, the country intends to reach middle-income country status by 2021. Historically, the focus of capacity building has been on strengthening state institutions; however, as the vision for state-building has become increasingly pluralistic, attention has shifted to capacity building of non-state actors. Strengthening Bangladesh’s nongovernmental organizations (NGOs)—which have played a significant role in Bangladesh’s health sector development—is necessary for continued progress toward middle-income country status. The Pathfinder-led and USAID- and DFID-funded NGO Health Service Delivery Project (2012–2017) aimed to increase local ownership of health service delivery while improving health outcomes, particularly for the poorest of the poor. This brief will examine the project’s approach to and experience of organizational capacity building in the private sector.