DalFort Closes Second Fund at $166 Million, Exceeding its Hard Cap

DalFort Capital Partners has successfully completed the sale of its portfolio company, Polymer Adhesives Holdings, LLC, to DiversiTech Corporation for an undisclosed amount. This transaction was announced on May 29, 2026, and follows DalFort's strategic investment in Polymer Adhesives in May 2023. The sale comes alongside the closing of DalFort's second fund, which garnered total commitments of $166 million, exceeding its hard cap.

Polymer Adhesives, based in Mineral Wells, Texas, specializes in manufacturing high-performance duct sealants, adhesives, and fire-stopping materials. Under DalFort's ownership, the company achieved significant growth, which included two strategic add-on acquisitions: Volunteer Adhesives and Fielco Adhesives. These acquisitions expanded Polymer Adhesives' product offerings and manufacturing capabilities, positioning the company for enhanced market competitiveness. The successful execution of this growth strategy reflects DalFort's commitment to operational excellence and value creation in the lower middle market.

DiversiTech Corporation, the acquirer, is a portfolio company of Partners Group and operates in the industrial sector, focusing on providing essential products and services to HVAC and plumbing markets. The acquisition of Polymer Adhesives aligns with DiversiTech's strategic objective to broaden its product portfolio and enhance its market presence in adhesive solutions. The integration of Polymer Adhesives is expected to leverage synergies in distribution and manufacturing, further strengthening DiversiTech's competitive position.

DalFort's Fund II, which closed with commitments from family offices, institutional investors, and high-net-worth individuals, will continue to focus on investing in founder- and family-owned industrial businesses. The firm targets companies with $3 million to $15 million in EBITDA and enterprise values between $15 million and $100 million. The successful fundraising will enable DalFort to pursue additional investments in sectors such as precision manufacturing, specialty chemicals, and industrial services, where operational expertise can drive durable value.

The closing of Fund II and the sale of Polymer Adhesives signify a robust outlook for DalFort Capital Partners and its investment strategy in the lower middle market. As the firm expands its portfolio and capabilities, it is well-positioned to capitalize on the ongoing demand for specialized industrial products and services. The transaction underscores the active investment landscape in the industrial sector, where strategic acquisitions and operational enhancements are critical for sustained growth.