One Rock closes debut fund on $432m

One Rock Capital Partners’ first fund was oversubscribed and beat its $300m target.

New York-based One Rock Capital Partners has closed its maiden fund on about $432 million, above its $300 million target.  

The fund will target controlling stakes in lower middle market companies in North America, and is already partially invested in companies including Petroplex Acidizing, Kova International, and Summit Research Labs. Babson Capital Management was a co-investor on the Summit Research Labs transaction. New York-based Summit is a global manufacturer of the active ingredients used in antiperspirants. About half of the firm’s revenues are derived from customized formulations developed for specific customers.

Mitsubishi Corporation is a strategic partner and the largest investor in the fund. Greenhill & Co. acted as the fund’s placement agent. 

One Rock has already sealed one exit from the fund, selling Texas-based Dixie Electric to an affiliate of First Reserve. One Rock declined to comment on the terms of the deal, but a source familiar with the transaction put the return multiple at 5x cash on cash. 

One Rock was formed in 2010 by Tony Lee and Scott Spielvogel, former managing directors from Ripplewood Holdings. Limited partners in One Rock’s debut vehicle include government and corporate pension plans, insurance companies, health organisations, endowments, foundations, and family offices.  Known pension commitments include the New York State Common Retirement Fund.