One Rock Closes its Largest Fund at Hard Cap

One Rock Capital Partners has held a hard cap and final close of One Rock Capital Partners III LP with total capital commitments of $2.0 billion. One Rock’s third fund is its largest ever and beat its original target of $1.5 billion.

Institutional limited partners in Fund III include government and corporate pension plans, insurance companies, health organizations, endowments and foundations, and high net worth families.

“We are privileged to have the support of such a stellar group of investors and are especially grateful for their flexibility in performing remote due diligence and holding virtual committee meetings during this pandemic,” said Deepa Patil Madhani, the head of investor relations at One Rock.

One Rock invests in companies that are active in the manufacturing, chemicals, business services, and auto retail sectors. The firm has expertise in complex transactions including corporate carve-outs. Since its founding in 2010 by managing partners Tony Lee and Scott Spielvogel, One Rock has invested in over 35 platform investments and add-on acquisitions.

“We are truly appreciative of the strong endorsement of the institutional investor community during this period of extraordinary uncertainty,” said Mr.  Spielvogel. “We are grateful for the continued support of an exceptional group of existing investors, and we’re delighted to have the opportunity to begin working with a select group of new limited partners in Fund III.”

One Rock’s investment team is bolstered by a group of 17 operating partners and its strategic relationship with Mitsubishi – one of Japan’s largest companies with operations in banking, energy, machinery, chemicals, and food. The involvement of these operating partners and Mitsubishi allows One Rock to conduct due diligence and pursue acquisitions in all types of situations, regardless of complexity.

“With Fund III, One Rock will continue to execute our proven, value-oriented strategy, drawing upon the extensive expertise of our investment professionals and operating partners to create meaningful value for our investors,” said Mr. Lee. “By bringing world-class resources and significant experience across a range of economic cycles, we believe One Rock is well-positioned to serve as the private equity partner of choice for companies seeking to thrive operationally and strategically.”

Just last month, One Rock partnered with family-owned investment firm Metropoulos & Co. to acquire the North American operations of Nestlé Waters (NWNA). NWNA’s North American brands include Poland Spring, Deer Park, Ozarka, Ice Mountain and Arrowhead. The business is headquartered in Stamford, Connecticut and has approximately 7,250 employees, 27 production facilities, and it operates the direct-to-consumer and office beverage delivery service ReadyRefresh. This transaction is expected to close before the end of May. At closing (expected by May), Dean Metropoulos – a billionaire investor and beverage company operator – will become the company’s chairman and interim chief executive officer.

“One Rock brings to bear extensive corporate carve out and operational capabilities that we believe will be instrumental to NWNA’s ongoing success as a standalone company,” concluded Mr. Spielvogel. “We look forward to working closely with our operating partners to accelerate the growth of NWNA’s extraordinary set of attractive brands, while continuing to create value in the communities in which the company operates.”

With the closing of Fund III, New York City and Los Angeles-based One Rock has now raised approximately $5 billion of total capital commitments.

© 2021 Private Equity Professional | March 11, 2021

Print Friendly, PDF & Email