Granite Creek Capital Partners – a private investment firm based in Chicago – recently announced the oversubscribed closing of its third investment fund, Granite Creek FlexCap III, L.P., a $300 million fund focused on providing flexible capital to growing lower middle market companies. The company also recently announced the acquisition of NYP Corp.
With the FlexCap III fund, Granite Creek plans to invest in 15 to 20 companies, establishing active relationships with company leadership and serving as a trusted advisor and partner. So far, Fund III has invested in Salem One and Pinstripes. Salem One is a leading provider of corporate communication solutions, including direct marketing, packaging, and logistics services. Pinstripes is a collection of entertainment and dining venues that attracts corporate events, weddings and other gatherings.
Granite Creek started fundraising for the FlexCap III fund in 2022 with an initial target of $250 million in total commitments. With the continued support of existing investors, new institutional partners, and increased firm team commitments, Fund III held a final close at $300 million, hitting its hard cap.
FlexCap III continues Granite Creek’s 18-year history of making flexible, growth-oriented investments in entrepreneurially-driven lower middle market companies engaged in manufacturing, business services, agribusiness, and other attractive high-growth niche industries.
Along with Granite Creek’s flexible capital, the firm is a partner to its businesses, bringing support to build companies and expand operational capabilities. Granite Creek is frequently the first institutional investor in a company, helping position the company for greater access to capital markets when needed.
Granite Creek Capital Partners closed its previous $200 million FlexCap II fund in 2019. And the FlexCap II fund includes a portfolio of 16 companies, including Morrow Sodali, Veterinary Pharmaceutical Solutions, Sunset Pacific Transportation and Odyssey Aviation. Its prior corporate investment fund (FlexCap I), a top decile performing fund, had $85 million of assets under management.
Through the close of FlexCap III Fund, Granite Creek has over $700 million of assets under management across its strategies.
Acquisition Of NYP Corp.
Granite Creek Capital also recently announced its acquisition of NYP, LLC, d/b/a NYP Corp., a New Jersey-based value-added packaging manufacturer and distributor focused on the wholesale nursery, agricultural, and industrial markets.
Since NYP’s humble beginnings in burlap packaging in 1946, the company has grown and thrived under multiple generations of family management. Long-time owner-operators Christopher and Jerry LaBelle bring unique knowledge, energy, and leadership to the business, having learned under their father, Gerald LaBelle, co-founder of NYP, during his multiple decades at the company’s helm.
As part of the deal, experienced industry executive Robert Dahl was named CEO of NYP and Chairman of the Board. In connection with Granite Creek’s investment in NYP, Granite Creek Partner Jim Clark and Director Andrew Kearney have joined NYP’s board of directors.
Key Quotes About Third Fund
“We are grateful for the support we have received from our investors, many of whom have supported us since our founding in 2005. The robust investor interest in FlexCap III is a tribute to the important role that our firm plays in supporting the growth of the small businesses that fuel the American economy. Our team’s operational and financial guidance is highly valued by the companies in which we invest and is the key ingredient to the strong absolute and risk-adjusted returns that we seek. With the close of Fund III, our team is well prepared to execute on our healthy pipeline of opportunities.”
- Mark Radzik, Co-Founder and Managing Partner
Key Quotes About NYP Deal
“NYP is deeply committed to its customers, employees, and other partners. With Granite Creek’s support, I look forward to working hand in hand with the NYP team to drive continued growth at the Company and to maintain the highest standards of quality and service.”
- Robert Dahl was named CEO of NYP and Chairman of the Board
“Chris and Jerry’s commitment to the success of NYP, its associates, and the satisfaction of its customers is a true testament to NYP’s founding principles of pride and integrity. We are excited to support NYP in this next phase of growth, product diversification, and expansion.”
- Andrew Kearney, Director at Granite Creek
“Our family is proud of the long history that NYP has enjoyed and have the utmost confidence that Robert and the Granite Creek team will continue to build on the Company’s legacy of integrity and excellence.”
- Chris and Jerry LaBelle
