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  • March 30,2020
  • Balance Point News
Balance Point Capital Announces Closing of Latest Private Credit Fund and Contribution to Covid-19 Relief Efforts

March 30, 2020, Westport, CT - America and the entire world are living in uncertain and tumultuous times.  To date, Covid-19 has had a dramatic effect on the health of hundreds of thousands of people in the United States, and on the well-being of billions of people around the world.  Lives have been lost, fear has overtaken many, routines have suffered massive disruption, businesses have shuttered, and families have lost jobs and are faced with a lack of clarity as to their futures.  Citizens of the world have looked to their governments for a path out of this morass and a return to the lives that we enjoyed just a few short weeks ago.

At Balance Point, we are extremely sensitive to this plight.  We have seen the impact of this disease affect family, friends, partners and colleagues as well as the businesses and communities that we support.  In light of these circumstances, we desire to have as broad and meaningful an impact as possible and have determined that the most important initial response that we could have is in the area of stabilization.  To that end, from our basements and spare rooms, through a constant stream of conference calls and Zoom meetings, we have for the past several weeks been laser focused on developing a thorough understanding of the impact of the new coronavirus on our portfolio, building dashboards and matrices, assessing liquidity and other risks, and working closely with management teams and sponsors to develop mitigation and contingency plans to address the current environment.  This is an all-hands effort, and we are confident that our early and thoughtful response will yield positive results for our portfolio companies, their employees and our limited partners.  This work remains ongoing and will be a priority for the foreseeable future.

We are proud of our response and believe that our efforts will be important to the continued health of our portfolio.  However, in this time of crises, we want to step-up and do more.  As governments around the world, including the US Federal and many state and local governments, pass various relief bills, one way that we can make an impact is by providing liquidity into a capital constrained economy. 

We feel fortunate that in light of all of the news about the importance of small businesses to our economy, for nearly 14 years Balance Point has focused on providing creative capital and liquidity solutions to the lower middle market, the sector most impacted by the current crisis.  To that end, we are extremely pleased to have recently closed our latest fund, Balance Point Capital Partners IV, L.P.  Together with our other investment vehicles, the closing of Fund IV gives Balance Point more than $1.1 billion of assets under management and, more importantly, provides us with substantial capital available for investment.  In this time of immense stress on our economy, we are pleased to tell the market that we are open for business, available to continue to provide debt and equity capital solutions to lower middle market companies and private equity sponsors in the same way that we have for nearly 14 years. 

Lastly, while it is our hope that capital deployment by Balance Point will help us do our part in returning the economy to solid footing, we also recognize that in times like this our civic duty extends beyond our office and home walls.  To that end, the entire team at Balance Point has made a donation to the Gillespie Center in Westport, CT, to help it support people impacted by Covid-19.  It is our hope that between supporting our current portfolio, providing fresh capital to the market and donating capital to those in need, Balance Point will be able to make a disproportionate impact on the recovery of our society and business community.

We are all in this together.  Please be safe and stay healthy.

About Balance Point Capital

Balance Point Capital is an alternative investment manager focused on the lower middle market. With more than $1.1 billion in assets under management as of this date, Balance Point invests debt and equity capital in select lower middle market companies across a variety of investment vehicles. We take a long-term, partnership approach to investing and are committed to building lasting relationships with our partners, management teams and intermediaries.

Balance Point Capital Advisors, LLC (referred to herein as Balance Point Capital) is a registered investment adviser. Further information is available at www.balancepointcapital.com.

 

 

CONTACT

Justin M. Kaplan
(203) 652-8264
jkaplan@balancepointcapital.com