One Rock Capital Partners, the middle-market buyout shop that recently agreed to buy Nestle SA’s bottled-water brands in the U.S. and Canada, raised $2 billion for its third private equity fund — its largest on record.
The firm, which focuses on manufacturing, chemicals and auto-retail companies, exceeded its $1.5 billion target with commitments from institutional investors including pensions, insurers and health organizations, according to a statement. The latest fund is more than twice the size of its predecessor, which garnered $964 million in 2017.
Other recent One Rock deals include the taking private of Innophos Holdings Inc., a maker of food additives, and the planned acquisition of an Illinois manufacturing site from chemicals giant BASF SE.
Like other private equity firms, New York-based One Rock is benefiting from a hot fundraising market as yield-starved investors plow money into the asset class. Still, capital-gathering across private markets dipped last year as the pandemic kept investors under lockdown.
One Rock, which also has offices in Los Angeles, was founded in 2010 by Tony Lee and Scott Spielvogel, former managing directors at Ripplewood Holdings. Their firm, specializing in corporate carve-outs, has amassed about $5 billion of cumulative capital commitments and invested in more than 35 companies.