One Equity closes first independent fund at $1.65bn

One Equity Partners VI comfortably cleared its target of $1bn, securing outside capital for the first time in the GP's history. Previously, the GP had invested solely from the JP Morgan balance sheet.

David Lippin, managing director and head of IR at One Equity told unquote": "We had more than $1.8bn in demand and had to cut investors back from their desired allocation. We also had to cut back on our own contribution to the fund, capping it at $50m."

Limiting the fund size will enable the manager to continue operating in the same space as it did before it became independent.

The GP specialises in core mid-market investments in the healthcare, technology and industrials sectors across North America and Europe.

Legal advice to the fund was provided by Debevoise & Plimpton.

Investors
Investors in One Equity Partners VI include pension funds, sovereign wealth funds and family offices. The fund also secured commitments from current and former portfolio company management teams.

Over half of the LPs are based in the US, with the remainder spread across Europe, Asia, Australia and the Middle East. Lippin said those investors from the Middle Eastern were not the typical private equity investors from the region, and that LPs from Israel were particularly active in the fund.

Investments
One Equity Partners VI made its first investment in February 2015, acquiring German laboratory glass manufacturer Duran Group in a secondary buyout from Adcuram. In a move typical of the GP's value creation strategy, Duran acquired Kimble Chase, an American business in the same industry, to increase its global presence and improve consumer offerings in the US. The equity for this deal was bridged from the GP itself due to a lag in institutions committing capital to the fund after JP Morgan spun out its private equity unit.

To date the GP has invested approximately $600m from the fund in eight separate deals and has also completed eight bolt-on transactions.

People
One Equity Partners – Dick Cashin (president); David Lippin (managing director, head of investor relations).

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• Topics
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• JP Morgan