Franklin Square forms PE operating company – exclusive

Franklin Square Capital Partners has teamed up with One Equity Partners to form an operating company that will invest in mid-market private businesses.   

Franklin Square Capital Partners and One Equity Partners have formed an operating company to provide long-term capital and management assistance to private mid-market companies

Instead of the traditional buyout private equity strategy, FS OneEquity will buy and hold businesses, and grow them to improve profitability, according to sources familiar with the platform.

Franklin Square and One Equity declined to comment.

“By leveraging its stable capital and expertise, FS OneEquity helps CEOs and leadership teams maximise the value of their businesses,” said a description of the new venture on Franklin Square’s website.

The FS OneEquity management team includes Franklin Square’s chief executive Michael Forman, chief investment officer Michael Kelly and head of private equities Tucker Twitmyer. From One Equity, the leadership team includes chief executive Dick Cashin and senior managing directors David Han and Greg Belinfanti, according to the website.

Philadelphia-based Franklin Square has most of its $17 billion in alternative credit strategies, with the bulk of it in public and private business development companies that are sub-advised by Blackstone-owned GSO Capital Partners.

One Equity was founded in 2001 as the private investment arm of Bank One Corporation, becoming the private capital unit of JPMorgan when Bank One merged with JPMorgan in 2004. The group spun out of JPMorgan last year.

One Equity invested $11 billion in 74 companies between 2001 and 2014, according to the firm’s website. It has offices in New York, Chicago, Frankfurt and São Paulo.