Fort Point Beats Target on New Fund

Fort Point Capital has closed its second fund, FPC Small Cap Fund II LP (FPC II), with $194 million of capital. The new fund beat its target of $175 million.

Boston-based Fort Point invests from $10 million to $30 million of equity in lower middle-market companies that have enterprise valuations of $20 million to $75 million. Sectors of interest include business services, healthcare services, information & software, and transportation & logistics.

“We appreciate the support from our existing and new limited partners, and we are pleased that our investor base has expanded to include a broad group of financial institutions, family offices and pension funds,” said Paul Lipson, a co-founder and partner at Fort Point.

Since the firm’s founding in 2010, Fort Point has now raised nearly $300 million in capital and invested in 10 platform companies and closed 15 add-on acquisitions.

Last March, Fort Point acquired Barrington Media Group, a Connecticut-based provider of technology-enabled marketing services with a focus on direct response advertisements in traditional media channels, including television, audio and direct mail. The company’s customers are active in the insurance, healthcare, and consumer products and services sectors.

Fort Point has also been busy with add-on acquisitions for 3Phase Elevator, the firm’s elevator services platform that it acquired in April 2018. Earlier this month, 3Phase acquired Wilmington, Delaware-based Brandywine Elevator and Philadelphia-based Penn City Elevator. 3Phase, headquartered south of Boston in Canton, Massachusetts, is one of the largest East Coast providers of maintenance, repair, and modernization services for all major brands of elevator and escalator equipment. Under Fort Point ownership, 3Phase has now completed five add-on acquisitions.

“We look forward to investing our new capital base in compelling risk-reward opportunities. We will continue our disciplined and systematic approach of investing in attractive sub-sectors and operationally focused post-investment value creation,” said Brooke Ablon, a co-founder and partner at Fort Point.

Fort Point’s investment team is led by Mr. Ablon, Mr. Lipson, Christina Pai, and Mike Hermsen.

New York City-based Forum Capital Partners was the placement agent for FPC II and Kirkland & Ellis provided legal services.

© 2021 Private Equity Professional | January 22, 2021

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