Hevesi, Deltapoint Capital Announce Investment in Rochester Marketing Firm
Sigma Marketing Group Will Use Capital to Expand Business in New York
September 13, 2006, Rochester, NY — A Rochester, New York-based marketing firm will be able to expand and add jobs in upstate New York thanks to an investment by the New York State Common Retirement Fund through DeltaPoint Capital Management, LLC, also based in Rochester, State Comptroller Alan G. Hevesi announced today.
The State Pension Fund has invested $2.8 million in Sigma Marketing Group through DeltaPoint Capital as part of the Fund’s In-State Private Equity Investment Program. That commitment helped leverage additional capital for a total investment of $5.5 million, giving DeltaPoint Capital a controlling interest in the company. The company, which currently employs 75 people, expects to add about 45 jobs over the next two years as a result of this investment.
“Through our In-State Private Equity Program, we have invested $183 million in 76 companies throughout New York State. That commitment has helped leverage even more capital from other investors for a total investment of $1.1 billion in New York companies,” Hevesi said. “These investments are providing the pension fund with strong returns while benefiting the local economy by helping these companies to grow and create new jobs. The investment in Sigma Marketing Group is just the latest example of the success of this program.”
“It is important that we invest in local employers to help protect jobs for Rochester’s working men and women,” said State Senator Joseph Robach (R-Greece, Brighton, Parma). “I want to thank Comptroller Hevesi and DeltaPoint Capital for investing in one of our local marketing businesses, Sigma Marketing, and for giving them the opportunity to expand their operation and grow jobs here in our community.”
“This investment by the state pension fund in Sigma Marketing proves once again that the public and private sectors can be productive, supportive partners in encouraging economic development,” said Assemblyman Joseph D. Morelle, (D-Irondequoit). “It is especially gratifying to know that these dollars will contribute to payroll expansion at a firm based in upstate, where job growth is by far the most important and difficult challenge we face.”
“This announcement is positive news for our local economy, because when we invest in local companies, our return on investment is jobs and economic growth,” said Monroe County Executive Maggie Brooks. “Sigma Marketing Group contributes greatly to our community’s economic vitality and I thank them for doing business in Monroe County.”
“The rapid growth within the marketing services industry demands that companies such as Sigma Marketing Group remain current with improving technology and competitive pricing in order to provide more comprehensive and effective service. This investment allows us to expand our role as a leader in defining current and future industry trends,” said Jim Byrnes, CEO of Sigma Marketing Group.
“The opportunity to invest in Sigma Marketing Group helps to further DeltaPoint’s core strategy, along with the State Retirement Fund, of investing in New York State’s best companies to help them achieve their long-term growth objectives. Sigma Marketing has a great management team and I am confident that together we will expand the business,” said David Waterman, managing director of DeltaPoint Capital Management.
The Pension Fund’s In-State Private Equity Investment Program was established in 1999 through State legislation. Through this program, the Pension Fund has committed $450 million to 15 private equity partners for investing in New York companies, helping to create new jobs and services for the community.
About DeltaPoint Capital DeltaPoint Capital III is the third pool of private equity capital managed by DeltaPoint Capital Management, LLC, which targets investments in established, privately owned or closely held companies located in New York State. DeltaPoint Capital III plans to invest in as many as 15 businesses over the next five years. The principals of DeltaPoint Capital have been actively involved in providing investment capital to companies in New York State for the past 17 years. Through two prior capital funds and other investments, DeltaPoint’s principals have invested in several Upstate New York companies and are actively managing six of these prior investments. For more information, visit www.deltapointcapital.com