Balance Point Capital has made an investment in GigaTrust, a provider of email security and document protection software.
The capital provided by Balance Point totaled $20 million and was comprised of debt and preferred equity. The proceeds will be used to fund the company’s growth within the cyber security market as the company migrates and expands its on-premise products to a cloud-based service offering called “GigaCloud”. The investment in GigaTrust was made through Balance Point Capital Partners II, LP.
GigaTrust, led by its founder and CEO Robert Bernardi, is headquartered in Herndon, VA (www.gigatrust.com).
“Cyber security – and in particular – protecting internal and external emails – is at the forefront of most companies’ minds today,” said Justin Kaplan, a Partner of Balance Point Capital. “We are delighted to be able to provide capital to GigaTrust, which is a leader in providing high value-add security software solutions for Fortune 500 companies and US government agencies. With the launch of GigaCloud, its cloud-based service offering, and its various strategic partnerships, we are thrilled to partner with Bob Bernardi and the rest of the management team as the business continues to grow and protect the intellectual property of today’s enterprises.”
Balance Point invests from $5 million to $20 million of mezzanine 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 quite pleased to have Balance Point as a partner and investor in GigaTrust,” said Mr. Bernardi. “The flexibility of their capital appealed to us. Balance Point’s capital should allow us to accelerate our growth trajectory for GigaCloud.”
Stephens Inc. (www.stephens.com) was the financial advisor to GigaTrust on this transaction.
© 2016 Private Equity Professional • 10-14-16