New York-based middle-market private equity firm One Equity Partners has raised $1.65 billion for its first fund with outside capital since spinning off of JP Morgan (NYSE: JPM) in 2015.
The fund, One Equity Partners VI, will focus on investing in businesses in industrial, healthcare and technology sectors in North America and Europe. Already the firm has invested about $500 million from the fund, making eight initial investments in companies and eight add-on acquisitions. Another $100 million investment is expected to close in about two weeks.
“We wanted to limit our fund size and remain disciplined in our investments in North American and European middle market businesses,” says Dick Cashin, president of One Equity Partners. “We will leverage our industry expertise, relationships, and operational resources to help management teams in our target sectors take their businesses to the next level.”
The investment strategy for One Equity Partners is to merge like-sized businesses that fit together strategically to quickly scale up and build market leaders. According to the firm, the strategy, along with flexibility in partnering with family owners, founders, management teams and corporations, has created a strong deal flow pipeline for the firm.
Since its 2001 start, One Equity Partners has completed more than 140 transactions. Besides New York, the firm has offices in Chicago and Frankfurt, Germany. The new fund includes $500 million raised from Lexington Partners and AlpInvest Partners when the firm broke away from JP Morgan. Prior to the spin off, the private equity arm of the bank invested the bank’s own capital.
Among One Equity’s recent investments, it acquired Anvil International, an Exeter, New Hampshire-based manufacturer of pipe fittings and system components, from Mueller Water Products (NYSE: MWA). Also, One Equity’s W.W. Williams Co. acquired Desert Fleet-Serv Inc., which provides truck repair services. In 2015, One Equity Partners’ Capital Advisors LP acquired the library systems division of 3M Co.’s (NYSE: MMM).
Investors in the new fund include pension funds, financial institutions, sovereign wealth funds, consultants, family offices, current and former portfolio company management teams, and private equity founders and dealmakers.