Ridgemont Equity Spins Out of BoA

Ridgemont Equity Partners launched today, as an independent private equity firm staffed by the former Banc of America Capital Investors team. This is part of BoA’s continued pruning of private equity exposure, which has included layoffs, spinoffs and secondary sales (most of which was set into motion long before Paul Volcker began to rule).

Charlotte-based Ridgemont will continue to manage a $1.5 billion legacy portfolio for BoA, plus also raise its own fund. Typical deals will be mid-market buyout and growth equity investments of between $25 million and $100 million.

I spent some time of the phone with Ridgemont partner Travis Hain, who previously served as co-founder and managing partner of BACI. Some quick notes:

  • The new firm has some legacy dry powder for between three to six new investments.
  • The general investment strategy is similar to BACI, except no more mezzanine or co-investment deals.
  • Fundraising has not yet begun, although Ridgemont is currently meeting with placement agents. No card-tipping when it came to targeted fund size.
  • “We’ve been talking about raising outside capital with the bank for several years, and it got a new sense of urgency when financial regulation came to the forefront in D.C.”