Ridgemont Equity Partners, a private equity firm that focuses on making buyout and growth investments in leading middle-market companies across the United States, recently announced the successful final close of its latest fund, Ridgemont Equity Partners V, L.P., which is also known as REP V. The fund reached its hard cap with an impressive $3.975 billion in capital commitments, significantly surpassing its initial fundraising target of $2.75 billion. This closing brings the firm’s total capital under management to more than $11 billion.
REP V has attracted a diverse and expansive investor base, marking it as the most extensive and varied in Ridgemont’s history. The fund includes commitments from over 100 prominent global institutions, encompassing a diverse range of investors, including pension funds, sovereign wealth funds, insurance companies, endowments, foundations, and family offices. Notably, the principals of Ridgemont Equity Partners themselves represent one of the largest investors in REP V, committing nearly $250 million. This significant internal investment underscores the firm’s belief in its own strategies and commitment to long-term success. The new fund will continue to build upon Ridgemont’s 32-year legacy of investing in tech-enabled service companies and distributors within three primary sectors: business services, healthcare, and industrials.
Initially established in 2010 as an independent firm after spinning out from Bank of America, Ridgemont Equity Partners places a strong emphasis on long-term alignment as a fundamental principle of its investment approach. This commitment is evident through its substantial general partner contribution in all Ridgemont funds, as well as through significant management team and selling shareholder rollover interests across its portfolio companies. The firm’s deep specialization in specific sectors, coupled with its distinctive Charlotte-based culture that fosters strong partnerships and a consistent method for creating value, has led to substantial returns across 70 platform company investments and more than 180 add-on acquisitions, showcasing its proven track record.
Advisors: Ridgemont was supported in this fundraiser by Evercore Private Funds Group, acting as the exclusive global placement agent, and Kirkland & Ellis serving as fund counsel.
KEY QUOTES:
“We are humbled by the extraordinary support we have received for REP V and grateful for the confidence and trust that our existing and new investor partners have placed in us. The success of this latest capital raise amidst a challenging fundraising environment further demonstrates the strength of our investment approach and strategy, the quality and cohesion of our team, and the strong alignment of interests we’ve built and sustained with our investors. We look forward to continuing to partner with experienced management teams to build strategically valuable businesses within the US middle market private equity landscape.”
Jack Purcell and John Shimp, Managing Partners at Ridgemont, in a joint statement
“The combination of cultivating long-term relationships with our investor partners, high discipline around capital deployment pacing and portfolio construction, and our ability to generate meaningful distributions in a market where liquidity has been scarce is what resonated most during this successful fundraise for REP V.”
Laura Fahrney, Partner and Head of Investor Relations
