Long Point Capital News

Long Point Capital Announces Fund III

Long Point Capital is pleased to announce the closing of its third private equity fund with $238 million of committed capital. A private equity firm with offices in New York and Detroit, Long Point Capital was founded in 1998 to partner and invest in successful founder and family-owned lower middle market businesses with total enterprise values between $25 million and $250 million. Using a simple formula of common sense and integrity, we have developed a stellar reputation over the past 16 years as a partner to management teams in more than 20 great companies.

We partner with entrepreneurs, owners and management teams to provide the financial capital and strategic resources to provide our partners with "two bites of the apple."  We provide upfront liquidity for the owners (the "first bite") and work with our new partners to create additional wealth through a future liquidity event at a higher value (the "second bite").  We believe that this approach creates more combined value for our partners than a simple sale of the business.

What solutions can we provide?

  • Liquidity / Estate Diversification - We can provide an owner the opportunity to generate liquidity and diversify their assets by monetizing a portion of the value of their business at a fair value.
  • Generational Ownership Transition - We can assist with the transition of ownership from one generation to the next through tax-advantaged structuring and management guidance.
  • Strategic Guidance - We can work with management as active directors to help set strategic goals and priorities, as well as act as a sounding board to solve strategic problems, provide resources, and pursue growth opportunities.
  • Management Succession - We can assist an entrepreneur as they transition their role and build their management team.
  • Growth Capital - We provide the capital and the expertise to enable a management team to execute its growth initiatives.

What else can we do to benefit the owner?

The PE+ESOP Recapitalization - 40% More After-Tax Proceeds. In addition to a typical private equity transaction, we are creatively differentiated by our ability to offer our PE+ESOP Recap to defer or eliminate the capital gains tax.  With capital gains rates as high as 37% in certain states, this can generate, on average, 40% more after-tax proceeds for an owner than a typical private equity transaction.  We accomplish this by combining a private equity transaction with an ESOP, and utilizing the Internal Revenue Code Section 1042 "Rollover". 

What are our investment criteria?

We seek to invest $10 million to $50 million in a new transaction. For new platform companies, we look for:

  • EBITDA - At least $5 million
  • Revenues - At least $25 million
  • Geography - Based in the United States and Canada
  • Industries - Manufacturing, services and distribution

For more information please contact:

Ira Starr - istarr@lpcfund.com
Eric Von Stroh - evonstroh@lpcfund.com
Gerry Boylan - gboylan@lpcfund.com