CounterPoint, with Platinum Equity pedigree, hits market with debut fund

Three former Platinum Equity executives are targeting $50 million for their debut fund to invest in companies that are in some form of transition, two people with knowledge of the firm told Buyouts.

The firm, CounterPoint Capital Partners, has been investing deal-by-deal for around eight years, one of the people said.

Fund I has just hit the market and it’s not clear whether it has yet raised any capital. Stanwich Advisors is placement agent on the fundraising.

It will have a three-year investment period, a 2 percent management fee and 20 percent carried interest, a fundraising document showed. The GP will kick in a 2 percent commitment to the fund, the document said.

CounterPoint looks for underperforming companies in manufacturing, distribution and logistics within the North American middle market.

The Los Angeles firm was formed in 2010 by Chris Iorillo, who was a vice president at Platinum from 2004 to 2008 and then at Abraxis BioScience, managing the personal investments of the company’s founder; Steve Rossi, ex-managing director at Platinum from 2005 to 2010; and Eric Willis, a vice president at Platinum from 2005 to 2010, according to his LinkedIn profile.

The firm invested in eight platform companies (and eight add-ons) on a deal-by-deal basis, generating a 2.3x gross multiple, a fundraising document showed.

Last year, the firm bought a struggling Ohio trucking company, Falcon Transport. Other investments include Artco-Bell Corp, which makes furniture for schools, and Tomich Brothers, which processes fresh and frozen seafood for global distribution.

Action Item: Contact Chris Iorillo at chris@counterpointcp.com

Photo sourced from Falcon Transport website