One Rock markets Fund II with $700 mln target

One Rock Capital Partners is back on the market with its second flagship vehicle, two limited partners told Buyouts. The firm set a $700 million target.

The fund “seems to be getting quite a lot of interest,” one LP said, noting that the fund could be oversubscribed.

One Rock encountered similar demand for its debut fund. Former Ripplewood Holdings executives Tony Lee and R. Scott Spielvogel launched One Rock in 2010 and closed its debut fund four years later on $431.5 million, exceeding their initial target by almost 45 percent.

The first fund included backing from New York State Common Retirement Fund, which committed $15.2 million, and Mitsubishi Corp, the firm’s largest investor and strategic partner.

The partnership with Mitsubishi gives One Rock and its portfolio companies access to market intelligence, financial products, as well as a global customer and markets, the firm’s website says.

One Rock typically invests in mature mid-market North American companies, its website says. The firm specializes in a handful of industries, including healthcare and auto retail, as well as business and environmental services, specialty manufacturing and chemicals.

Earlier this year, the firm acquired North Pacific Paper, which produces newsprint and other paper products, as well as Island Energy Services, a carve-out of Hawaiian energy assets previously owned by Chevron.

One Rock emphasizes portfolio-company operations and has seven operating partners on staff. Operating partners John Georges and Andrew Georges served as board members for Compass Chemical, which One Rock sold to Italmatch Chemicals earlier this year.

One Rock maintains offices in New York and Los Angeles.

Action Item: More about One Rock: www.onerockcapital.com

A reveler’s hand rests on a stone during the summer solstice at the ancient Stonehenge monument on Salisbury plain in southern England on June 21, 2012. Photo courtesy Reuters/Kieran Doherty