The New York State Common Retirement Fund has reported a nearly fourfold $6.7 million return on its investment in local company 5LINX Enterprises Inc. The retirement fund also saw an estimated 21 percent internal return rate on the investment, according to state Comptroller Thomas DiNapoli.
Based in the Rochester area, 5LINX provides residential and business clients with essential products and services, including telecommunications and energy offerings. 5LINX’s growth has earned it eight consecutive years on the Inc. 5000 list of the fastest-growing privately held companies in America.
The state pension fund invested in the company through its In-State Private Equity Program, which supplies venture capital to New York-based companies. Between 2006 and 2009, 5LINX received three rounds of funding totaling $1.7 million.
“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,” Christopher O’Donnell, General Partner for fund manager Trillium Group, said in a statement.
5LINX also recently penned a strategic marketing agreement with retail energy supplier U.S. Gas & Electric. The agreement designates USG&E as the sole supplier of natural gas and electricity for new 5LINX customers in all current and future USG&E markets.