Wind Point to meet target for Fund VIII next week – exclusive

The firm’s eighth flagship fund, Wind Point Partners VIII, expects to hold an interim close on its way to its $750m hard-cap.

Mid-market firm Wind Point Partners is expected to reach its $500 million target for Wind Point Partners VIII in an interim close next week, according to a source familiar with the matter.

The source added that the fund has a hard-cap of $750 million, which the firm plans to meet in the first quarter. Chicago-based Wind Point was not available to comment.

The firm held a first close on the fund last month on $435 million, according to two separate US Securities and Exchange Commission filings from 28 November, which showed that Wind Point Partners VIII-A and VIII-B gathered commitments from 44 investors and the general partner. Wind Point launched the fund at the beginning of the year.

The filings from last month also listed New York-based Moelis & Company as the placement agent for the eighth fund. Moelis declined to comment.

Investors in the eighth fund include the State of Wisconsin Investment Board and PPM America Capital Partners. Neither limited partner was available to comment.

According to Wind Point’s website, the firm makes equity investments of $30 million to $70 million in companies with an enterprise value of between $100 million and $500 million.

The source said Fund VIII has made four investments so far, in pork rind snacks producer Evans Food Group in April, warehouse logistics service provider St. George Logistics in July, polyvinyl chloride producer Aurora Plastics in August and stretch films maker Paragon Films in December.

A document from the University of Michigan endowment said that Wind Point focuses on low-technology businesses in the US Midwest at all stages of development, including early-stage, consolidations, leveraged buyouts and recapitalisations. Sectors targeted by Wind Point include business-to-business services, specialty retail and industrial manufacturing.

The eighth fund's predecessor, Wind Point Partners VII, raised $915 million, missing its $1 billion target, in 2009, according to PEI data. Investors in the seventh fund include Michigan Department of Treasury, State of Wisconsin Investment Board, Alaska Permanent Fund Maryland State Retirement and Pension System.

In October 2015, Wind Point portfolio company Taylor-Wharton International, which makes industrial gas storage products, filed for Chapter 11 bankruptcy protection for the second time, as reported by Private Equity International. Wind Point initially acquired Taylor-Wharton in 2007 for about $300 million. It wasn’t clear which Wind Point fund invested in Taylor-Wharton.

Wind Point manages $2.8 billion in assets, according to PEI data, and was co-founded by Bob Cummings, who had been a partner at now-defunct investment bank Robertson, Colman & Stephens, and Rich Kracum, who had been a principal at consultant Booz, Allen & Hamilton.