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Wind Point gets fund extension

The Chicago-based firm requested more time to wrap up its fourth fund, which closed on $405m in 2000.

Wind Point Partners, a Chicago-based mid-market firm, has extended the life of its fourth fund to 30 July, 2014, according to documents from the General Retirement System of Detroit

The firm made the extension request in June and received LP consent, according to a person with knowledge of the situation. Detroit's General Retirement System approved the extension, according to the system's senior investment officer Ryan Bigelow. 

The fund, which closed in 2000 on just over $400 million, is no longer charging a managing fee and in fact has no portfolio companies remaining, according to the person. The extension was needed as a technical matter to allow the release of funds in escrow or payments from deals designed to distribute over time, the person said. 

Wind Point could not be reached for comment. Wind Point IV was generating a 2.06x multiple and a 10.2 percent internal rate of return as of 31 March, 2013, according to data provider Preqin. Its latest fund, Wind Point Partners VII, closed on $915 million in 2009, according to PEI's Research and Analytics division.

While Wind Point’s extension is a strictly technical move to allow for the proper release of remaining distributions, extending the lives of aging private equity funds is a big point of discussion in the industry these days. 

Estimates range up to $100 billion or more in funds that are 10 years or older and many of those firms continue to come back to LPs asking for fund life extensions. It’s an issue that has become a big focus of the private equity secondary market, which has been exploring ways to either inject new life into aging funds or find other ways to restructure those partnerships.