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May 18, 2012

 

DiNapoli: State Pension Fund Invests in Sleepy's

In-State Program Provides $12.9 Million to Long Island Company to Expand and
Create Jobs While Generating Strong Investment Returns

New York State Comptroller Thomas P. DiNapoli today toured the Hicksville headquarters of Sleepy's, one of the nation's largest mattress retailers, which recently received funding through the New York State Common Retirement Fund's (Fund) In-State Private Equity Program.

In March, the Fund invested $12.9 million in Sleepy's through the Hudson River Co-Investment Fund managed by Hamilton Lane. The deal was led by San Francisco-based Calera Capital.

"The state pension fund is investing in New York's economic future," said DiNapoli. "Sleepy's has been doing business in New York for more than half a century and this investment will help them stay here and continue to expand. This company provides a great example of how the In-State Private Equity Program partners with New York businesses to obtain the capital they need to grow and create jobs while generating significant returns for the state pension fund."

The In-State Private Equity Program, which was founded in 2000 and made its first investment in 2001, partners with private equity managers investing in New York-based companies. The program provides 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.
  • DiNapoli has committed $534 million to the program since he took office in 2007.
  • More than 3,000 employees have been added.
  • Companies in which the Fund has invested have raised nearly $4 billion in additional capital.

"Sleepy's has a long history in Long Island and we could not be happier to have the New York State Common Retirement Fund and its partners as our new co-investors," said Adam Blank, Chief

Operating Officer and General Counsel of Sleepy's. "Sleepy's is the largest specialty mattress retailer in the country with over 2,800 employees, including 900 in Long Island. This investment will help us to complete several infrastructure upgrades, add jobs and continue to grow our business."

Sleepy's is a privately-owned fourth-generation company with over 800 retail locations in thirteen states spanning from Vermont to Virginia with sales available through sleepys.com. Harry Acker opened the company's first store in Brooklyn in 1957 and Sleepy's moved into its current headquarters in Hicksville in 2009. Sleepy's ships more than 3,000 mattresses daily through its seven distribution centers.

"We are extremely pleased to support this management team and its growth plans for Sleepy's in New York State and the broader region," said Dave Helgerson, Principal at Hamilton Lane. "We know through our work with the In-State Private Equity Program in New York that these opportunities can generate attractive returns and contribute to economic growth, always a winning combination."

The Fund is currently invested in two other Long Island companies through its In-State Private Equity Program. The Fund has invested a total of $4.1 million in PACS Industries of Bethpage since January 2011 and invested $5 million in Wright Risk Management of Uniondale in December 2011.

DiNapoli has toured several other investments made through the Fund's In-State Program in the past weeks, with stops completed in New York City and Albany and a visit scheduled for Rochester. For more information on the program or company eligibility, visit: www.osc.state.ny.us/pension/instate.



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