Sleepy's gets $12.9M support from state

New York State pension funds have invested $12.9 million in mattress retailer Sleepy's, state Comptroller Thomas DiNapoli announced Friday.

DiNapoli, speaking inside the company's cavernous warehouse in Hicksville, said he was confident the Common Retirement Fund will recoup its investment in Sleepy's and more. He is sole trustee of the $140-billion fund, which provides income to state and local government retirees.

Sleepy's is the sixth local company to receive support from the fund's In-State Private Equity Program, which began in 2000.

"It's not a loan program, it's not a grant program -- it's an equity program that's about making money for the pension fund," said DiNapoli, of Great Neck Plaza. "We also hope to create jobs."

Sleepy's will use the state money "to complete several infrastructure upgrades, add jobs and continue to grow," said Adam Blank, chief operating officer of the 825-store chain. Based in Hicksville since 2009, Sleepy's has 2,812 employees; about 1,000 locally.

The retailer was started in Brooklyn in 1957 by Harry Acker, who is now board chairman. His son, David, is chief executive.

The state investment is part of a recapitalization of Sleepy's that gave a sizable stake to the Calera Capital private-equity firm, which has a seat on the board of Sleepy's.

The state money was invested through the Hudson River Co-Investment Fund, managed by Hamilton Lane. Hamilton is one of 18 investment managers used by DiNapoli for the in-state investment program.

Other local companies receiving pension dollars are PACS Industries in Bethpage, $4.1 million, and Wright Risk Management in Uniondale, $5 million.

DiNapoli said, "We've committed $1 billion to this program and have invested $608 million . . . So, we have more money, and we want to get it out the door."