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June 19, 2012

 

DiNapoli: State Pension Fund Investing In New York Businesses

Tours Corporate Headquarters of Rochester-Based 5LINX

New York State Comptroller Thomas P. DiNapoli today toured the corporate headquarters of 5LINX Enterprises in Rochester to highlight investments made in New York businesses by the New York Common Retirement Fund (Fund). Since 2001, the Fund has invested nearly $60 million in companies in Monroe, Ontario and Genesee Counties through its In-State Private Equity Program.

“5LINX is a great example of how the state pension fund is recycling money back into our economy and putting New Yorkers to work,” DiNapoli said. “The In-State Private Equity Program helps businesses large and small start, stay and expand in New York. There are millions of dollars available for investment and we are on the lookout for more opportunities to invest in the Empire State.”

The In-State Private Equity Program, founded in 2000, partners with private equity managers to invest in New York-based companies. The program provides the Fund with investment returns consistent with the risk of private equity while also expanding the availability of capital for New York businesses.

Highlights of the In-State Private Equity Program (as of March 2012) include:

  • Of the nearly $1 billion committed to the program since 2001, $608 million has been invested in 218 companies. The program currently has significant additional capital available for investment in New York-based companies
  • The program has returned $322 million to the Fund on $206 million invested in 75 exited companies while achieving a 30 percent rate of return.
  • DiNapoli has committed $534 million to the program since he took office in 2007.
  • More than 3,000 employees have been added.
  • Companies have raised nearly $4 billion in additional capital.

With operations in the United States and Canada and offices in New York and California, 5LINX Enterprises and its sister company, GLOBALINX, provide a range of telecommunications and other services for residential and business clients. The company was founded in 2001 and was an Inc. magazine 500 fast-growing company from 2006-2009. In 2012, 5LINX was named the 77th largest direct sales company in the world by Direct Selling News. 5LINX employs more than 250 people at its Monroe County headquarters.  The Common Retirement Fund has made three investments with its partner Trillium Group in 5LINX – $1 million in 2006, $600,000 in 2007 and $100,000 in 2009.

“5LINX is delighted to have Comptroller Thomas DiNapoli here with us today,” said Craig Jerabeck, President and CEO of 5LINX Enterprises.  “Thanks in large part to the vision of the Comptroller’s In-State Private Equity Program, 5LINX has enjoyed tremendous growth since 2006. Our local employment has grown from 34 employees in 2006 to over 250 full time positions in Monroe County today. This investment has not only resulted in significant job growth but will provide an outstanding rate of return to the state pension fund.”

“Our partnership with the 5LINX management team has been a tremendous success,” said Chris O’Donnell, General Partner at Trillium Group. “5LINX has evolved from a small start-up company to a rapidly growing enterprise with global operations.  The In-State Private Equity Program’s investment in 5LINX has been instrumental in its growth.”

The Fund has made 19 investments in Monroe, Ontario and Genesee Counties totaling $59.1 million since the inception of the In-State Private Equity Program, including $1 million invested in OyaGen, Inc., a Rochester-based bio-pharmaceutical company focused on drug treatments for HIV/AIDs and other viral diseases.

For more information on the program or company eligibility, visit: www.osc.state.ny.us/pension/instate/



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