Ridgemont Equity Will Seek New LPs in 2011

Ridgemont Equity Partners, the North Carolina-based private equity firm, will spend part of 2011 looking to replace its lone LP with a batch of new ones for its next fund, multiple sources confirmed.

Currently, the PE shop is reaching out to third-party investors, although it anticipates it will still work with BofA in the future, one said to peHUB.

Ridgemont, formerly known as Banc of America Capital Investors, also has yet to hire a placement agent, a source acknowledged. When named Banc of America Capital Investors, the PE fund raised an $875 million fund in 2002 and a $700 million fund in 1999, according to Thomson Reuters data. Additionally, it raised a $1 billion fund in 2005 and a $1.5 billion fund in 2008.

Neither source that spoke with peHUB specifically identified how much Ridgemont is looking to gather this time around.

The private equity firm still has more than a dozen portfolio holdings, according to Thomson Reuters research. Its active investments include Solo Cup Co., Bass Pro Group, Lightower Fiber Networks and Momentum Energy, among others. Ridgemont is continuing to develop several of its assets—including Lightower—via organic development and add-on transactions.

As the U.S. government interprets the Volcker rule, it remains to be seen how much private equity firms will be impacted—particularly, those that were formerly bulge bracket banks’ assets and that have since been spun out. Among that crowd—along with Ridgemont—is also Trilantic Capital Partners, which was spun out of Lehman Brothers. Trilantic boosted its pipeline by partnering with listed boutique bank Evercore Partners, which also committed up to $50 million to the PE firm.

And in December, HSBC—not under requirement to make any Volcker rule adjustments—spun out its Asian private equity arm, which manages approximately $2.4 billion, via a MBO with existing management. The firm was renamed Headland Partners. Still other PE firms remain under several bulge bracket banks’ management, and other entities, already spun-out, will no doubt be monitoring the government’s application of the rule.