Granite Creek Capital Partners: $300 Million Third Fund And NYP Acquisition
Granite Creek Capital Partners, a private investment firm based in Chicago, has successfully closed its third investment fund, Granite Creek FlexCap III, L.P., surpassing its target by raising $300 million. The oversubscribed fund is primarily focused on providing flexible capital to growing lower middle-market companies. In addition to this achievement, the firm has also announced its acquisition of NYP Corp, a New Jersey-based value-added packaging manufacturer and distributor.
The newly closed Granite Creek FlexCap III fund aims to strategically invest in 15 to 20 companies and establish active relationships with the leadership of these entities, serving as a trusted advisor and partner. The fund has already made investments in Salem One and Pinstripes. Salem One specializes in corporate communication solutions, including direct marketing, packaging, and logistics services. Pinstripes, on the other hand, comprises a collection of entertainment and dining venues that cater to corporate events, weddings, and various gatherings.
With the initial goal of raising $250 million in total commitments, Granite Creek began fundraising efforts for the FlexCap III fund in 2022. Thanks to the continued support of existing investors, new institutional partners, and increased firm team commitments, the fund exceeded expectations and closed at $300 million, hitting its hard cap.
This successful close adds to Granite Creek’s track record of 18 years in making flexible, growth-oriented investments in lower middle-market companies operating in industries such as manufacturing, business services, agribusiness, and other attractive high-growth niche sectors. The firm not only provides flexible capital but also actively supports its portfolio companies in building and expanding their operational capabilities. By often being the first institutional investor, Granite Creek helps position these companies for future capital market access.
Granite Creek Capital Partners’ previous fund, FlexCap II, closed at $200 million in 2019 and currently includes a diverse portfolio of 16 companies including Morrow Sodali, Veterinary Pharmaceutical Solutions, Sunset Pacific Transportation, and Odyssey Aviation. The firm’s earlier corporate investment fund, FlexCap I, managed assets worth $85 million and performed among the top decile of funds.
With the close of the FlexCap III fund, Granite Creek now manages assets totaling over $700 million across its various investment strategies.
In another significant development, Granite Creek Capital Partners has announced its acquisition of NYP Corp. NYP, LLC, commonly known as NYP Corp, is a packaging manufacturer and distributor that primarily serves the wholesale nursery, agricultural, and industrial markets. The company has experienced substantial growth since its initiation in burlap packaging in 1946, passing through multiple generations of family management. Christopher and Jerry LaBelle, industry veterans and long-time owner-operators, have led the company into a new era. They bring valuable knowledge and leadership, having learned from their father, Gerald LaBelle, who co-founded NYP and acted as head of the firm for several decades.
To facilitate the acquisition, Granite Creek has appointed Robert Dahl, an experienced industry executive, as CEO of NYP and Chairman of the Board. Furthermore, Granite Creek Partner Jim Clark and Director Andrew Kearney have joined NYP’s board of directors as part of the investment deal.
Commenting on the closing of the FlexCap III fund, a representative from Granite Creek expressed gratitude for the support received from investors, many of whom have been with the firm since its inception in 2005. The spokesperson highlighted the crucial role Granite Creek plays in supporting the growth of small businesses that contribute to the American economy. They also emphasized the firm’s operational and financial guidance as the key to delivering strong returns. With Fund III closed, Granite Creek is well-positioned to capitalize on its robust pipeline of investment opportunities.
In response to the NYP acquisition, Robert Dahl, the newly appointed CEO, expressed his commitment to maintaining the company’s high standards of quality and service. With Granite Creek’s support, Dahl looks forward to working collaboratively with the NYP team to drive continued growth and product diversification.
Christopher and Jerry LaBelle, the former operator-owners of NYP, expressed enthusiasm about the partnership with Granite Creek. They emphasized their dedication to the success of the company, its employees, and customer satisfaction. Moreover, they conveyed their excitement about the next chapter of NYP’s growth, which involves expanding product offerings and reaching new markets.
Granite Creek Capital Partners’ recent closing of its oversubscribed third fund and the acquisition of NYP Corp demonstrate the firm’s commitment to supporting the growth and expansion of small to mid-sized companies. By providing not only flexible capital but also hands-on guidance, Granite Creek aims to foster success and cultivate long-term partnerships.
