5LINX, a telecommunications company located in Rochester, has generated an estimated $6.7 million return, nearly four times the initial investment, and achieved an approximated 21 percent internal rate of return for the New York State Common Retirement Fund (Fund), New York State Comptroller Thomas P. DiNapoli announced today. The Fund invested in 5LINX through its In-State Private Equity Program, which seeks profitable investments in New York State-based companies.
“The success of the 5LINX investment is another example of how the In-State Private Equity Program delivers positive results for the Fund and for our local communities,” said DiNapoli. “The program has successfully helped more than 250 companies remain and expand in the state and has supported nearly 4,000 jobs. The state public pension fund is investing in New York’s future.”
Trillium Group, a fund manager for the In-State Private Equity Program, received a $25 million commitment for venture capital funding in 2004. Trillium has made 14 investments in New York State-based companies, including 10 companies located in and around Rochester. 5LINX received $1 million in 2006, $600,000 in 2007 and $100,000 in 2009.
“5LINX represents another great example of what can happen when you connect a talented group of founders with private equity capital from New York State’s Common Retirement Fund. 5LINX has gone on to experience significant growth and business success culminating in a return of capital to the Common Retirement Fund with a very attractive rate of return. A win for all parties involved,” said Chris O’Donnell, general partner for Trillium Group.
5LINX has operations in the United States and Canada. The company provides a range of telecommunications and other services for residential and business clients. The company, founded in 2001, was one of Inc. magazine’s 500 fastest growing companies from 2006-2009. In 2012, 5LINX was named the 77th largest direct sales company in the world by Direct Selling News.
For more information on the program, visit: http://www.osc.state.ny.us/pension/instate
About the Common Retirement Fund
New York State Comptroller Thomas P. DiNapoli is trustee of the New York State Common Retirement Fund, the third largest public pension plan in the United States with more than one million members, retirees and beneficiaries from more than 3,000 state and local government employers. The Fund has a diversified portfolio of public and private equities, fixed income, real estate and alternative instruments and has consistently been ranked as one of the best managed and best funded plans in the nation. Over the past 20 years, 82 percent of the cost of benefit payments has been funded by investment returns. The Fund’s fiscal year ends March 31, 2014.
About Trillium Group, LLC
Trillium Group is a Rochester-based venture capital group with a primary focus on growth equity investment opportunities located in western New York. Trillium’s current portfolio consists of more than 20 companies in a broad range of industry sectors and businesses. http://www.trillium-group.com