Blue Point Capital Partners has held a final close of its fourth buyout fund, Blue Point Capital Partners IV LP (BPCP IV), at its hard cap of $700 million.
With this closing, Blue Point has now raised nearly $2 billion in capital across four institutional funds and will continue its focus on partnering with entrepreneurs and management teams to grow middle market companies. The new fund will continue the strategy of the firm’s predecessor fund, Blue Point Capital Partners III LP, which closed in November 2014 at its hard cap of $425 million.
Blue Point invests in manufacturing, business services, consumer and value-added distribution companies that have from $20 million to $200 million in revenue and EBITDA greater than $5 million. The Blue Point partner group – Chip Chaikin, John LeMay, Juli Marley, Mark Morris and Sean Ward – have been investing together for more than 19 years. The firm has offices in Cleveland, Charlotte, Seattle, and Shanghai (www.bluepointcapital.com).
“We are extremely pleased to have quickly exceeded our initial target and hit our hard cap for BPCP IV,” said Mr. Chaikin. “We are gratified that a considerable majority of the capital raised came from long-term investors in Blue Point’s funds, many dating back to BPCP I. We are also excited to welcome several new leading limited partners including consultants, endowments, pension funds and insurance companies. We appreciate the confidence they have shown in our team and strategy.”
Blue Point’s investment process focuses particularly on companies where it can apply its value creation strategies including: (i) Asian strategies to provide additional cost reduction and/or revenue-generating opportunities by helping companies execute Asian growth or supply chain initiatives; (ii) Data & Digital strategies to improve the way portfolio companies collect, analyze and act on data. In most cases, this refers to the way companies price their product or service as well as how they manage their inventories and interact with their customers; and (iii) Mergers & Acquisitions strategies that create value through add-on acquisitions. Nearly 70% of the portfolio companies in Blue Point’s two earlier funds have executed add-on acquisitions. In fact, portfolio companies in Fund III have closed on 16 add-on acquisitions alone.
In addition, while Blue Point is an active investor nationwide, the firm is particularly active in its home markets of the Midwest, Northwest and Southeast.
Sixpoint Partners was the exclusive global placement agent for this fundraise. Sixpoint is headquartered in New York with offices in Chicago, San Francisco and Hong Kong (www.sixpointpartners.com).
© 2018 Private Equity Professional | January 26, 2018