Blue Point Capital Fund IV raises $700 mln

Blue Point Capital Partners LLC has raised $700 million with its most recent fund, surpassing the pool’s $600 million target. Blue Point Capital Partners IV LP will invest in lower middle-market companies that are in the manufacturing, business services, consumer and distribution sectors. Sixpoint Partners acted as placement agent while Kirkland & Ellis provided legal counsel in connection with Fund IV.

PRESS RELEASE

NEW YORK–(BUSINESS WIRE)–Sixpoint Partners, a leading global investment bank serving the middle market, announced the successful closing of Blue Point Capital Partners IV, L.P. (“Fund” or “Fund IV”), with $700 million of capital commitments. The Fund, which is the fourth investment vehicle for Blue Point Capital Partners, LLC (“Blue Point”), today closed at its hard cap and well in excess of its $600 million target after only three months of marketing. The Fund received commitments from a number of top-tier investors, including endowments, insurance companies, multi-manager funds, consultants, public pensions, corporate pensions and family offices.

Fund IV will continue the strategy of its predecessor fund, Blue Point Capital Partners III, L.P., which closed at its hard cap of $425 million of capital commitments in 2013. The Fund’s core investment strategy, which Blue Point has executed since 1990, involves sourcing and making control investments in lower middle-market companies that are in the manufacturing, business services, consumer and value-added distribution sectors. Blue Point’s target businesses are located primarily in the Midwest, Southeast and West Coast and generate between approximately $20 million and $200 million in revenue and approximately $5 million and $25 million in EBITDA. Blue Point has a long history of working closely with entrepreneurs and managers to grow their businesses by leveraging its unique capabilities and experience as a value-added partner. The firm is led by its partners, Charles “Chip” Chaikin, John LeMay, Julianne “Juli” Marley, Mark Morris and Sean Ward.
“We are grateful for the continued confidence and loyalty of our existing investors and remain focused on deepening the successful, long-term partnership we have with them in addition to welcoming new LPs to the Fund,” said Chip Chaikin, Partner at Blue Point. “We look forward to executing Blue Point’s proven strategy of utilizing our effective operating resources to help strong management teams achieve even greater success.”
John LeMay, Partner at Blue Point, added, “Our LP base includes a prominent and diversified group of investors, many of whom have invested with us for multiple funds, who are fully aligned with our vision.”
“By engaging with its existing and prospective LPs between fundraises, Blue Point adeptly kept investors apprised of its impressive track record and internal developments. This commitment to maintain a constant dialogue with LPs, along with the talented management team, helped to rapidly drive demand for Fund IV,” said Larry Smith, Partner at Sixpoint Partners.
“With over $1.4 billion in demand, Fund IV is an excellent example of how to cultivate a fundraise in advance, and we expect this oversubscribed fund to generate the strong returns the market has come to expect from the Blue Point team,” said Eric Zoller, Partner at Sixpoint Partners.
Kirkland & Ellis provided legal counsel in connection with Fund IV.
About Blue Point Capital Partners
Blue Point Capital Partners is a private equity firm managing over $1.5 billion in committed capital. With offices in Cleveland, Charlotte, Seattle and Shanghai, Blue Point’s geographical footprint allows it to establish relationships with local and regional entrepreneurs and advisors, while providing the resources of a larger, global organization. The Blue Point partner group has a 19-year track record of partnering with companies in the lower middle-market to facilitate growth and transformative change. It is one of only a few middle market private equity firms with a presence in both the United States and China, which provides a distinct advantage for its portfolio companies. Blue Point typically invests in businesses that generate between $20 million and $200 million in revenue.
About Sixpoint Partners
Sixpoint Partners is a leading global investment bank focused on a diversified set of services and solutions for the middle-market private equity industry. The firm’s core areas of focus include (i) primary fund placement, (ii) secondaries advisory and (iii) co-investment placement across a wide range of industries, strategies and geographies. Sixpoint Partners has a reputation for its direct, results-driven style and for delivering innovative solutions to complex problems in order to create long-term value for clients. Sixpoint is headquartered in New York with offices in Chicago, San Francisco, Austin and Hong Kong. For more information, please visit http://www.sixpointpartners.com/.
Sixpoint Partners, LLC, is a registered broker/dealer, member FINRA (http://www.finra.org) and SIPC (http://www.sipc.org). Sixpoint Partners Asia Limited is licensed by the Securities and Futures Commission (http://www.sfc.hk).