DalFort Capital Partners announced a series of milestones, including the successful sale of portfolio company Polymer Adhesives Holdings, the expansion of its leadership team, and the closing of its second investment fund with total commitments of $166 million.
The Dallas-based private equity firm completed the sale of Polymer Adhesives Holdings, a manufacturer of high-performance duct sealants, adhesives, and fire-stopping materials, to DiversiTech Corporation, a portfolio company of Partners Group. DalFort originally invested in Polymer Adhesives in May 2023 and supported the company’s growth through two strategic acquisitions: Volunteer Adhesives, a Tennessee-based producer of solvent- and water-based adhesives, and Fielco Adhesives, a manufacturer and formulator of two-part epoxy systems. The acquisitions expanded Polymer Adhesives’ product portfolio and manufacturing capabilities.
In addition to the exit, DalFort expanded its investment team with the addition of Marquez Bela as Senior Partner. Bela brings nearly 30 years of middle-market investing experience, including a 12-year tenure at Rosewood Private Investments and previous roles at Capital Southwest Corporation, Parallel Investment Partners, and Goldman Sachs.
The firm also announced the closing of DalFort Capital Partners Fund II, L.P. with $155 million in limited partner commitments and an additional $11 million commitment from the general partner, bringing total commitments to $166 million and surpassing the fund’s hard cap. Investors in the fund include family offices, institutional investors, high-net-worth individuals, and current and former business owners and operating executives.
Fund II will continue DalFort’s longstanding strategy of investing in founder- and family-owned industrial businesses in the lower middle market. The fund targets companies generating between $3 million and $15 million of EBITDA and enterprise values ranging from $15 million to $100 million. Key sectors include precision manufacturing, specialty chemicals, industrial services, building products, aerospace and defense, power and infrastructure, and distribution.
Since its founding in 2016, DalFort has completed seven platform investments and fourteen add-on acquisitions, representing more than $250 million in aggregate transaction value. The firm’s track record includes five realized investments and three active platform companies.
BMO Capital Markets and Houlihan Lokey served as financial advisors on the Polymer Adhesives transaction, while Greenberg Traurig acted as legal counsel. Jones Day served as fund counsel for Fund II.
KEY QUOTES:
“It was a privilege to partner with Brady Basil and the entire Polymer Adhesives team. We invested in a strong business with a clear growth trajectory, and the team executed on every front. I wish DiversiTech and Polymer Adhesives every success in this next chapter.”
Bryan Bailey, Managing Partner, DalFort Capital Partners
“I am proud to have joined Bryan and the DalFort team. What drew me to the firm is its differentiated approach to the lower middle market, combining patient capital, deep operating expertise, and a genuine commitment to the businesses and people we partner with. This segment of the market requires such an approach, and DalFort’s reputation, and results, show that this is a firm built on these principles.”
Marquez Bela, Senior Partner, DalFort Capital Partners
“We are grateful for the trust our investors have placed in DalFort and proud to have attracted such high-quality partners and team members. As our firm grows, we remain committed to partnering with founders and business owners in the lower middle market industrial sector to drive exceptional results. This successful exit, team expansion and fund raise provide us with the bandwidth and resources to continue executing on this mission in a meaningful way.”
Bryan Bailey, Managing Partner, DalFort Capital Partners
