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Ridgemont closes REP II on $995m hard cap

Ridgemont Equity Partners II is larger than its $735m predecessor, but will follow the same strategy as REP I seeking buyout and growth equity investments of $25m-$100m in sectors including energy, healthcare, TMT and basic industries and services.

US mid-market firm Ridgemont Equity Partners has closed Ridgemont Equity Partners II (REP II) on its hard cap of $995 million, surpassing its $900 million target.

The fundraising process wrapped up in late October with strong demand from both returning and new investors, the firm said. The GP also made a “substantial commitment” to REP II.

“Given the record number of funds in the market today, there is a lot of noise in the market,” Ridgemont partner Travis Hain told Private Equity International. “Therefore, it’s important to stay in close contact with the investors you have interest in.”

REP II’s investment strategy will follow that of REP I, which held a final close on $735 million in 2013, exceeding the $675 million target. The fund seeks buyout and growth capital investments of between $25 million and $100 million in the four sectors Ridgemont focuses on: health care, energy, TMT and basic industries and services.

“Right now we’re busy across all sectors,” Hain said. “There are times when some sectors are more attractive than others. Our four-sector focus allows us to invest in these various areas of the economy as opportunities rise.”

Ridgemont partner John Shimp told PEI that REP I was under-invested in the upstream energy space prior to the drop in commodity prices.

“Today we’re looking patiently for the right teams and the right projects,” Shimp said.

The Pennsylvania State Employees’ Retirement System, the State of Wisconsin Investment Board and El Paso Firemen & Policemen’s Pension Fund are some of the investors that committed capital to REP II, according to PEI’s Research & Analytics division.

Brooklands Capital Strategies was the strategic fundraising advisor for this fund.

Ridgemont manages about $2.5 billion in assets, according to PEI data. It has invested about $3.5 billion in 124 companies, the firm said.