Another Ripplewood Spin-Out Seeks Funding

One Rock Capital Partners, a firm started by former investment professionals with Ripplewood Holdings LLC, is trying to raise its first fund, Buyouts reported yesterday, citing a source who has reviewed the firm’s marketing materials.

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 that is now seeking to raise its own fund. 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 which is now 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 to efforts to reach them for comment.

Bernard Vaughan is a senior editor at Buyouts Magazine. Follow his tweets @BVaughanReuters. Follow Buyouts tweets @Buyouts.