Sixpoint Partners, a global investment bank serving the middle market, has closed Blue Point Capital Partners IV (Fund IV), with USD700 million of capital commitments.
The Fund, which is the fourth investment vehicle for Blue Point Capital Partners (Blue Point), closed at its hard cap and well in excess of its USD600 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, which closed at its hard cap of USD425 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 USD20 million and USD200 million in revenue and approximately USD5 million and USD25 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,” says Chip Chaikin, Partner at Blue Point. “We look forward to executing Blue Point’s proven strategy of utilising our effective operating resources to help strong management teams achieve even greater success.”
John LeMay, Partner at Blue Point, adds: “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,” says Larry Smith, Partner at Sixpoint Partners.
“With over USD1.4 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,” says Eric Zoller, Partner at Sixpoint Partners.