Wind Point pulls in new investor for Fund IX

The firm has been cautious about its fund sizes and measured in coming back to market with successive funds.

North American mid-market focused Wind Point Partners is gaining new investors for its ninth flagship fund, which is targeting $1.2 billion.

Minnesota State Investment Board committed $100 million to Wind Point Partners IX, a new relationship for the $101.1 billion pension system, according to pension documents received by Private Equity International. The Chicago-based firm began fundraising in June.

The vehicle’s predecessor raised $985 million in 2016; the firm has been cautious about its fund sizes and measured in coming back to market with successive funds, a source familiar with the fundraising told PEI.

Wind Point did not return requests for comment.

Pennsylvania State Employees’ Retirement System also committed $75 million to Wind Point’s latest fund, according to PEI data.

In October, Wind Point wrapped up a GP-led process on its 2006-vintage, $715 million Wind Point VI fund, sister publication Secondaries Investor reported. The two remaining assets in the vehicle were moved into a continuation vehicle backed by Neuberger Berman. The new vehicle, Wind Point Partners CV1, is around $200 million and has a five-year life. More than two-thirds of LPs opted to sell.

Wind Point focuses on companies in consumer products, industrial products and business services with enterprise values between $100 million and $400 million at the time of acquisition.

It has invested almost $3.5 billion in 97 portfolio companies since inception in 1984, focusing on mid-market companies that need leadership transitions or an upgrade in their executive talent. This includes family-run or entrepreneur-led businesses with no succession plan and businesses with weak leadership. It identifies a chief executive for the business to be acquired, and during the diligence process builds a value creation plan to build the business.

Wind Point was founded and backed by SC Johnson of the SC Johnson & Sons, a family-owned household cleaning products company.

Through the 1980s and 1990s, Wind Point was led by Bob Cummings and Rich Kracum and became an institutional capital-backed private equity firm, another source said.

Wind Point is under its third generation of leadership, led by Nathan Brown, Paul Peterson, Alex Washington, Konrad Salaber and David Stott. This leadership team deployed and managed Funds VII and VIII, according to the Minnesota documents.