US private equity firm Ripplewood is to merge with Mid-Ocean Partners. The two groups will collaborate on new private equity investments in the US and Europe and have voiced plans to raise a joint fund in the future although there are no immediate plans as yet.
The two firms will continue to operate independently, but it is anticipated that when they raise the new fund it will be marketed under the Ripplewood Holding’s umbrella. Timothy Collins, senior managing director of Ripplewood announced that Ted Virtue, co-founder and chief executive of MidOcean Partners would also become senior managing director of the new fund.
He said: “Ripplewood and MidOcean working together will significantly extend our reach with respect to investment opportunities, capital, professional expertise and geographic coverage.”
Ripplewood has offices in New York and Tokyo and MidOcean Partners has offices in New York and London. To date, Ripplewood has focused mainly on investments in the US and Japan, but has recently shifted its focus to Europe. Most recently the firm acquired the phosphorous chemicals business from Akzo Nobel of the Netherlands following its investment in KRATON Polymers which was purchased in 2001 from Royal Dutch Shell.
MidOcean Partners was formed in 2003 as part of the $1.6bn management buyout of Deutsche Bank’s later stage private equity assets. Ted Virtue and Graham Clempson, head of MidOcean’s European business led the buyout.