A new frontier.

• Position: CHARLOTTE REGION

After reporting a 5% increase in fourth-quarter sales, to $1.4 billion, Belk might be looking for a buyer. The Charlotte-based company said in a statement it has hired New York-based investment firm Goldman Sachs to help it "explore all options for our future." William Henry Belk opened a bargain store in Monroe in 1888, and the company added stores across the South in the 20th century. Despite increased competition from Macy's, Nordstrom and other national retailers, Belk, the nation's largest family-owned department-store chain, remains profitable and is expanding its online business. Closely held by second- and third-generation family members, the company now operates 297 stores across 16 southern states and employs about 25,000 people, including more than 8,000 in North Carolina.

Frontier Capital's fourth fund, announced in March, raised $390 million--more than eight times as much as the $45 million in its first that launched in 1999, reflecting continued confidence of investors. Back then, the Charlotte-based private-equity firm's investing strategy was unusual. "There were a fair number of firms that focused on more mature manufacturing and distribution and service businesses, and early stage biotech and tech investments. There were not as many that focused on tech-enabled services companies," says Richard Maclean, who co-founded Frontier with Andrew Lindner. "We were very fortunate that we chose that focus 15 years ago." The niche is larger and more crowded these days, but it still can be lucrative. It took Frontier six months to raise the money for its fourth fund. Its third fund of $250 million had an average annual internal rate of return of 16%, Frontier officials say. Most Frontier investors are institutions such as pension funds and college endowments--many that had put up money previously. "We've had very strong returns, and I think you...