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Another Ripplewood Spin-Out Seeks Funding

Firm: One Rock Capital Partners

Fund: One Rock Capital Partners LP

Target: $250 million

Placement Agent: Unclear

Based in New York, One Rock is seeking $250 million, according to the source. The firm is led by Tony Lee and Scott Spielvogel, former managing directors at Ripplewood Holdings. Lee was one of the earliest members of that firm, which was founded in 1995, but he and Spielvogel left in early 2010 to start One Rock Capital.

One Rock Capital is at least the third firm to be launched in recent years by Ripplewood alumni. Ian Snow, the son of former Secretary of the Treasury John Snow, who had been at Ripplewood since 1995, co-founded Snow Phipps Group in 2005 and today is investing out of its $844 million second fund. Meanwhile, a trio of former Ripplewood investment professionals, Frank Baker, Peter Berger and Jeffrey Hendren, are seeking $400 million for a debut fund for their new outfit, Siris Capital Group.

One way One Rock might be able to differentiate itself is that Lee has been able to take with him a strategic relationship Ripplewood had with the Japan’s Mitsubishi Corp., our source said, which invested in Ripplewood funds and provided a gateway of sorts to deal opportunities in that country. Mitsubishi and Ripplewood formed their partnership in 1996. It’s unclear if Mitsubishi is maintaining a relationship with Ripplewood, which has struggled in recent years with staff defections and an inability to raise more funds. According to reports, in 2008 the firm shelved a plan to raise $2.5 billion for a third fund.

Lee and Tim Collins, the CEO of Ripplewood, did not respond by deadline to efforts to reach them for comment.