Editor’s note: Local Tech Wire’s continuing series of venture capital and investment firm profiles is written by Matthew Burns, Worth Civils and Daniel Pearson. Spun off from financial services firm KeyCorp two years ago, Blue Point Capital Partners looks to finance management buyouts, recapitalizations and expansions at middle-market companies.

The firm has tried to achieve geographic diversity by establishing offices in Charlotte, Seattle and KeyCorp’s hometown of Cleveland.

Blue Point has $500 million under management and typically invests at least $25 million in a portfolio company, with a target range of $50 million to $150 million. Principals usually invest alongside the fund, and executives of portfolio companies are encouraged to invest in each other as well.

The firm prefers companies with valuations between $20 million and $250 million in industries characterized by established products or services, adequate barriers to competition and limited risk of technological obsolescence, such as automotive parts, metals processing and packaging. But its portfolio does include some technology concerns, such as Trek Diagnostic Systems, a microbiology testing service, and Ultimate Technology, which produces computerized point-of-sale systems for the retail and hospitality industries.

Here’s the skinny:

Featured firm: Blue Point Capital Partners

Mailing address: 201 S. Tryon St., Suite 850, Charlotte, NC 28202

Phone number: (704) 347-1111

Web site:
www.bluepointcapital.com

Management Team:

Lane Faison (Vice President)
Juli Marley (Principal)
Shannon Smith (Managing Partner)

Focus of firm: Private equity investment firm with offices in Charlotte, Cleveland and Seattle that invests in middle-market businesses. Blue Point’s principals previously undertook similar activities as Key Equity Capital, an affiliate of KeyCorp, one of the nation’s largest financial services holding companies.

Size of current fund: Not available

Money under management: $500 million

Names of companies funded over the last five years:

Amrep, Inc.
ETI Canada, Inc.
Pleasants Hardware Co.
Blackhawk Automotive Plastics, Inc.
Hilite, Inc.
S. Madill, Ltd.
Buckeye Steel Castings Co.
Hygenic Corporation
Southern Weaving, Inc.
Consolidated Foundries, Inc.
Jorgensen Forge Corporation
Trek Diagnostic Systems, Inc.
Convergent Label Technology, Inc.
Metal Technology Solutions
Ultimate Technology Corporation
DentalCare Partners
Midland Steel Products
Universal Protective Packaging, Inc.
EMS, Inc.
New Northwest Broadcasters
Zero Manufacturing Inc.

Sweet Spot (types of deals, stage of the company): Principally focused on businesses characterized by established products or services, adequate barriers to competition, and limited risk of technological obsolescence. Also, companies with
enterprise valuations between $20 million and $250 million.

Most important attributes for companies seeking funding: A strong management team, significant potential for growth – either internally or through acquisitions, demonstrated competitive strengths, and a track record of profitable results.

What differentiates you: We have extensive experience in identifying, evaluating and engaging in a variety of private equity investment transactions, including management buyouts, corporate divestitures, recapitalizations of private companies, expansion and growth financings and industry consolidations. Principals personally invest in every transaction, thus aligning their objectives with those of each company and its management
team.

Thursday’s profile: Dragonfly Capital

For previous profiles, search the Venture Watch category dating from Feb. 1 to today.