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April 06, 2011

 

DiNapoli: Pension Fund Invests $3.6M in PACS Industries, Inc.

Long Island Manufacturer is Latest In-State Program Investment


The New York State Common Retirement Fund (Fund) invested $3.6 million in Great Neck-based switchgear manufacturer PACS Industries, Inc., State Comptroller Thomas P. DiNapoli announced today at a news conference on Long Island. The investment is part of a $7.2 million investment in PACS by DeltaPoint Capital Management, LLC, a partner in the Fund's In-State Private Equity Program.

"PACS Industries is a perfect example of how we can do well for the members of the Retirement System while doing good for New York businesses," DiNapoli said. "PACS Industries makes custom electrical equipment for unusual applications in rail transportation, sports stadiums and other areas. Investing in innovative technology designed right here in New York is a sound investment for the pension fund and a great investment in Long Island."

"DeltaPoint is extremely excited to partner with a strong, New York state-based company in PACS Industries, Inc.," said Kevin Halpin, director at DeltaPoint and a member of the PACS board of directors. "We feel the company occupies a unique position in the metalclad switchgear space, and see this as an opportunity to generate above market returns for our investors, including the New York State Common Retirement Fund."

PACS began manufacturing switchgear—essentially apparatus that control the flow of large amounts of electricity—in 1972. Its major clients include electrical utilities, railroads, oil refineries, manufacturers and other industries with exceptional electrical needs.

"We are building upon our unique market position and proprietary technology to better compete in the markets that we have chosen to prosecute," added Bruce Dalis, the PACS chief executive officer whose family founded the firm. "PACS shows favorably against competition because our products are better engineered, more soundly manufactured and are ultimately safer for technicians that are working in the field. The time for PACS to grow is now, because our market opportunity is significant."

The only privately held switchgear company in the United States with a complete arc resistant medium voltage product line, PACS has built custom equipment for the Citi Field baseball stadium, LaGuardia Airport, newspaper printing facilities and dozens of other clients.

"We are delighted the New York State Common Retirement Fund, of which our employees are participants, and DeltaPoint Capital Management see fit to invest in PACS, one of our local businesses," said Village of Great Neck Mayor Ralph J. Kreitzman. "PACS' offices on Steamboat Road in our Village house their corporate headquarters and project engineering, drawing, management and estimating functions. We wish them continued success in our Village."

"Such a significant investment in a North Hempstead-based company is yet another indication of the municipality's sound business sector, even in these challenging economic times," North Hempstead Town Supervisor Jon Kaiman said. "I applaud the New York State Common Retirement Fund for making this welcomed investment."

"I commend Comptroller Tom DiNapoli for utilizing the New York State Common Retirement Fund as an economic development engine," said Kevin S. Law, president and CEO of the Long Island Association. "Through the Fund's In-State Equity Program, this is a substantial investment in a unique Long Island company and we hope it's the first of many Long Island businesses to take advantage of this program."

Through the In-state Private Equity Program, the Fund invests with private equity managers who seek to invest in companies in New York state that require capital for growth. In addition to delivering returns consistent with the Fund's private equity portfolio, the program also attracts capital from other investors and helps stimulate job growth in New York.

Since 2000, $554 million has been invested in 176 companies through the In-state Private Equity Program. The Fund has achieved a 30 percent rate of return on the investments it has exited. DiNapoli has added $524 million to the program since taking office, bringing the total amount committed to the program to $978 million. The Fund has approximately $424 million available to invest in New York-based companies.

About the Common Retirement Fund
The New York State Common Retirement Fund is the third largest public pension plan in the United States with more than one million members, retirees and beneficiaries from state and local governments. The Fund has a diversified portfolio of public and private equities, fixed income, real estate and alternative instruments.

About DeltaPoint Capital
DeltaPoint Capital Management, LLC is a Rochester, NY-based private equity fund manager that makes lead-sponsored investments in companies with proven cash flows and strong management teams and that are principally located in the northeastern United States. The firm recently held its initial close on its fourth private equity fund and is actively sourcing investment opportunities. Fund IV employs a growth-oriented approach to small cap buyout opportunities in underserved markets throughout the Northeast. The fund seeks niche market leaders that are capable of significant growth. DeltaPoint identifies and implements changes necessary to accelerate this growth and achieve excellent returns.



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