DeltaPoint Capital Management has held a first close on more than $50 million for its fourth fund, which is targeting a total of up to $125 million. Limited partners include the New York State Common Retirement Fund. DeltaPoint is a Rochester, N.Y.-based firm focused on buyout and growth equity investments.
DeltaPoint Capital Management, LLC (“DeltaPoint”) announces the first closing of its newest private equity fund offering, DeltaPoint Capital IV, L.P. (“Fund IV”). Fund IV is the fourth pool of capital managed by DeltaPoint, a Rochester, NY-based private equity fund manager. Fund IV’s initial close represents aggregate committed capital of more than $50 million (including amounts committed through parallel funds) and DeltaPoint is targeting a final close of between $100 million and $125 million.
Following the success of its predecessor fund, DeltaPoint Capital III, L.P., (“Fund III”), Fund IV will make buyout and growth equity investments in strategically positioned businesses throughout the northeast United States. Fund IV’s first close includes a commitment from the New York State Common Retirement Fund. At $126 billion, the New York State Common Retirement Fund is one of the largest public pension funds in the world, and Thomas P. DiNapoli, New York State Comptroller, is its sole trustee. The balance of Fund IV’s committed capital has been raised among a number of institutional investors, family offices, and individuals.
“The New York State Common Retirement Fund and DeltaPoint Capital have a track record of success when it comes to investing in New York-based companies,” DiNapoli said. “New York businesses will continue to benefit from DeltaPoint and the Common Retirement Fund’s partnership through Fund IV and our In-state Private Equity Program.”
“Now more than ever, we feel that we’re well positioned to have a very positive impact on the business landscape throughout the northeast United States,” said David Waterman, Managing Director of DeltaPoint. “We look forward to deploying capital in underserved markets in an effort to help provide economic stability in the region and grow employment numbers, especially in New York State.”
Fund IV plans to invest in as many as fifteen businesses over the next six years. U.S. Census Bureau data indicates that there are more than 25,000 businesses in the northeast United States that fit DeltaPoint’s investment criteria. Many of those companies will seek capital to fund growth or recapitalizations of their businesses in the next several years, and Fund IV is well positioned to invest in these companies.
DeltaPoint makes lead-sponsored, operationally oriented investments in change of control transactions throughout the northeast United States. Partnering with strong management teams, the firm seeks to drive growth and increase profitability within creditworthy, cash flow positive companies.
Thomas Cimino, Managing Director, states “The firm’s strong operating expertise, coupled with its proven and experienced Operating Directors, allow DeltaPoint to lend a wealth of knowledge and expertise in guiding companies across many industries. The members of our team will provide guidance and oversight from the board level in every Fund IV investment.”
Through three prior funds, DeltaPoint’s principals have completed ten platform acquisitions, along with numerous add-ons. DeltaPoint is actively involved in managing four remaining Fund III portfolio companies: Climax Manufacturing Company, a manufacturer of folding cartons and recycled paperboard; Sigma Marketing Group, a full service marketing, data analytics, and data warehousing firm; IPLogic, Inc, an IT professional services company focusing on voice and data networking; and Badger Technologies, a regional provider of contract electronics manufacturing.
The principals of DeltaPoint have been actively involved in providing investment capital to companies in New York State for over 20 years, and have executed more than 100 transactions. The aggregate value of these transactions exceeds $2 billion, and many of these businesses are based in New York State.