June 28, 2005
Comptroller Hevesi, Assemblyman Reilly And Albany County Executive Breslin Join With Deltapoint Capital Management To Announce Investment In Latham Technology Firm
IPLogic to Use Funds to Create 100 Jobs in Capital Region and Other Upstate Locations, Drive Expansion of New York’s Tech Valley
A Latham technology company will be able to expand and create new jobs in the Capital Region thanks to an investment by the New York State Common Retirement Fund and private equity firm DeltaPoint Capital Management LLC, New York State Comptroller Alan G. Hevesi, sole trustee of the $120 billion retirement fund announced today.
The New York State Common Retirement Fund (CRF) and DeltaPoint Capital Management LLC, a Rochester-based private equity firm, have invested a total of $1.5 million, half of that, $750,000, coming from the CRF, to enable IPLogic, a network systems integrator and one of the fastest growing computer networking companies in the Capital Region, to continue to increase its service offerings within New York State, including central New York and the Hudson Valley, in addition to expanding its presence in the Capital Region.
“Upstate New York’s economy depends on preserving existing industries while at the same time encouraging the growth of new technologies. This investment accomplishes these goals. I am proud of the State pension fund’s role in helping IPLogic continue to expand and create new jobs in the Capital Region,” Hevesi said. “This is an important investment that will benefit the local and State economy and that will earn a competitive return for the pension fund. My congratulations go out to IPLogic and its CEO Ken Yanneck and to David Waterman and DeltaPoint Capital, for making this deal possible. DeltaPoint is an integral partner in the pension fund’s in-state private equity program, and I look forward to working with them to continue bringing new businesses and jobs to New York.”
“The pension fund investment being announced today is a win for the Capital District and the entire Tech Valley Region,” said Senate Majority Leader Joseph L. Bruno. “IPLogic is another great example of the importance of leveraging venture capital to stimulate economic growth, help small businesses grow, attract new employers to the area, and create good paying jobs. I am pleased to support this worthwhile partnership, and I am confident that this investment will pay huge dividends by allowing more people to live and work right here in the Capital Region.”
Small businesses in New York often have problems finding venture capital investors to help them grow. The CRF is working to address that need and help boost the State economy in a number of ways, including a $364 million private equity program targeted for New York State investments. The State pension fund’s investment in DeltaPoint Capital Management LLC is part of that effort.
“IPLogic is precisely the type of young company that can boost the Capital District’s economy and create jobs. I congratulate Comptroller Hevesi and DeltaPoint Capital Management for forming a partnership that makes investments in companies like IPLogic possible,” said Senator Neil Breslin.
“I'm delighted to say the Capital Region and in this case Colonie is economically alive and well -- in fact, robust and growing. IPLogic exemplifies the job creating technology industry that is the future of our region. Congratulations to Comptroller Hevesi and the principles of IPLogic and DeltaPoint Capital on their partnership,” said Assemblyman Bob Reilly.
“I salute Comptroller Hevesi for his commitment to and investment in the high tech businesses that are creating jobs in our community,” said Albany County Executive Mike Breslin. “This creative initiative gives IP Logic access to resources that will allow them to expand and create new jobs, benefiting the entire Capital Region.”
DeltaPoint Capital Management LLC is a Rochester-based private equity fund focused on established businesses with annual revenue of at least $5 million in the manufacturing, distribution and specialized services sectors. The CRF provided DeltaPoint with $20.5 million in commitments. DeltaPoint is a participant in the Common Retirement Fund’s in-state private equity program. CRF’s investment leverages additional capital from other investors: the total investment by the CRF in IPLogic is $750,000 through DeltaPoint Capital and the total for all investors in this financing round is $1.5 million.
“DeltaPoint’s mission is to invest in New York State companies that have both the management infrastructure and positive cash flow in place that will enable them to continue to grow and create jobs in upstate New York,” said David Waterman, Managing Director, DeltaPoint Capital Management, LLC. “IPLogic is poised to significantly expand its own staff, and the company’s staff augmentation services help both job seekers and employers.”
“This investment provides IPLogic with a great opportunity to continue to accelerate our growth,” said Ken Yanneck, CEO, IPLogic. “IPLogic’s staff is firmly entrenched in the Capital District and upstate New York, and we’re thrilled that we can help fuel job growth in the area in which we enjoy living and working.”
IPLogic’s revenue increased from $1.5 million in 2001 to $16.7 million in 2004. Projected revenue for 2005 is $25 million. Staffing has increased from 19 employees in 2001 to 45 employees today. The company recently moved to new offices in Latham to accommodate its growing staff. This investment is intended to help IPLogic add up to 100 jobs in the next three to five years. Thirty to fifty of these jobs will be in the Capital District; the remainder will be in other areas upstate.
IPLogic provides converged voice and data business communications in the areas of IP telephony/VoIP, network security, managed services, network infrastructure (LAN/WAN), training, and staff augmentation services. IPLogic services customers in a variety of industries, including higher education, healthcare, financial services, and state and local government.
About the Common Retirement Fund
About DeltaPoint Capital