Balance Point Capital has held a final close of Balance Point Capital Partners III LP (BPCP III), the firm’s fifth fund, with capital commitments of approximately $380 million, exceeding the fund’s initial target of $300 million. The new fund received commitments from both existing and new investors including pension funds, insurance companies and other asset allocators.
“We are extremely pleased with the strong reception BPCP III received from both new and returning limited partners,” said Seth Alvord, Managing Partner of Balance Point Capital. “We believe this level of investor support is a direct result of the quality of work done by the Balance Point team over the past 10 years. BPCP III provides us with the capital necessary to continue executing upon our strategy of being the partner of choice for companies and private equity investors seeking customized financing solutions to provide operational flexibility and support strategic growth.”
Balance Point invests from $10 million to $50 million of first and second lien debt, unitranche debt, subordinated debt, and equity in lower middle market companies that have revenues of $10 million to $150 million and EBITDAs between $3 million and $30 million. Balance Point was founded in 1988 and is based in Westport, CT (www.balancepointcapital.com).
“We are deeply grateful for the support and ongoing trust of our existing and new limited partners,” said Justin Kaplan, Partner of Balance Point Capital. “We continue to see exciting opportunities to deploy capital in the lower middle market and BPCP III will enable us to continue providing value-added solutions to our partners while leveraging the core strengths of our platform: certainty, flexibility and customization.”
BPCP III has already made three investments: APS Technology (November 2017, senior debt), a Wallingford, CT-based manufacturer of off-the-shelf and custom measurement-while-drilling and logging-while-drilling products for oil and gas downhole drilling (www.aps-tech.com); CorePower Yoga (September 2016, mezzanine debt), a Denver-based operator of yoga studios with more than 150 studio locations (www.corepoweryoga.com); and FreshAddress (March 2018, debt and equity), a Newton, MA-based provider of email marketing services directed at cleaning, correcting, growing, and leveraging business email lists (www.freshaddress.com).
Lazard (www.lazard.com) served as placement agent to Balance Point in raising BPCP III.
© 2018 Private Equity Professional | October 19, 2018