One Rock Capital Partners, a lower middle-market private equity firm, has held a final closing of One Rock Capital Partners, LP with $431.5 million in total capital commitments, surpassing its fundraising target of $300 million.
This is the first private equity fund raised by One Rock, which acquires lower middle-market companies primarily in situations characterized by complexity. The new fund’s investor base consists of government and corporate pension plans, insurance companies, health organizations, endowments and foundations, and high net worth families.
“We are extremely grateful for the trust the institutional investor community has placed in One Rock. We look forward to continuing to build our reputation as a leading sponsor in complex situations in the lower middle-market,” said Managing Partner Scott Spielvogel.
One Rock makes controlling investments of $10 million to $60 million in companies with potential for growth and operational improvement using an approach that utilizes the firm’s Operating Partners to identify, acquire and enhance businesses in select industries. Sectors of interest include the chemicals and process industries; specialty manufacturing and healthcare products; business and environmental services; and automotive retail.
One Rock also has a strategic relationship with Mitsubishi Corporation – the firm’s largest investor – which can provide strategic resources to One Rock and its portfolio companies, including access to potential new business partners, market intelligence, and low-cost sourcing through increased purchasing power globally. One Rock was formed in 2010 by Tony Lee and R. Scott Spielvogel, both formerly Managing Directors at Ripplewood Holdings. The firm is based in New York (www.onerockcapital.com).
“We are pleased that our in-house Operating Partners, our relationship with Mitsubishi, and our investment approach have resonated as distinguishing factors for investors. We believe we have unique resources to help companies achieve long-term value creation,” said Managing Partner Tony Lee.
One Rock has already completed three investments through the new fund – Petroplex Acidizing, Kova International, and Summit Research Labs. Petroplex, based in Midland, TX, is a provider of chemical treatment and logistics services to oil companies (www.petroplex.com). Kova, based in Garden Grove, CA, is a developer, manufacturer and marketer of branded in-vitro diagnostic products for the urinalysis market (www.kovaintl.com). Summit Research, based in Huguenot, NY, is a producer of active ingredients used in antiperspirants (www.summitreheis.com). In December, One Rock exited its investment in Dixie Electric, a distributor of electrical supplies and materials based in Odessa, TX (www.dixielectric.com), in a sale to First Reserve.
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-24-14