Cypress Performance Group


Cypress Performance Group (“CPG”) offered a portfolio of advanced materials and diversified products with leading brand positions in the specialty chemicals and industrials verticals. The company was formed through the combination of IPS Corporation, a global manufacturer of specialized industrial products, and Encapsys LLC, the market leader in the development of microencapsulation technologies.


In November 2017, Sherman Capital Holdings LLC acquired IPS Corporation from private equity firm Nautic Partners. IPS was acquired through Sherman’s existing portfolio company Encapsys LLC, which together with IPS formed Cypress Performance Group. The group represented a diversified, global specialty chemical and industrial platform with leading market positions across a range of product categories. IPS serves the industrial, commercial, and residential end-markets through its exhaustive lines of solvent cement, structural adhesive, and specialty plumbing products. Encapsys is the patented inventor of microencapsulation and has been providing innovative solutions to partners in home care, personal care, agriculture, textiles, bedding, and carbonless paper for over 65 years.

Key Achievements

Between 2017 and 2021, CPG experienced strong revenue and EBITDA growth, the successful acquisition and integration of five businesses in core and adjacent sectors, and the introduction of additional innovative eco-friendly technologies and product lines. In 2021, IPS and Encapsys were separately sold to Centerbridge Partners, LP and Milliken & Company, respectively. Both companies are well-positioned to continue their strong positive momentum under their new owners.

Investment Date

November 2017

Divestment Date

October 2021


Specialty Chemicals, Industrials

Investment Type

Minority Investment


Baltimore, MD, USA


Cypress Performance Group