Rockbridge Growth Equity Management (Rockbridge Growth Equity) has held a final closing on RB Equity Fund II, and RB Equity Fund II-A (collectively Fund II), a new USD345 million private equity fund.
Fund II will focus on digital media & e-commerce, tech-enabled products & services, financial services and consumer services, sectors in which Rockbridge Growth Equity has extensive investment experience and access to strategic relationships.
Fund II follows Rockbridge’s successful Fund I, a secondary vehicle that was raised in 2019. Fund II benefited from a significant increase in commitments from existing investors and from a blue-chip group of new investors. Investors in Fund II include fund-of-funds, corporate and public pensions, financial institutions, consultants, multi-family offices, CEOs, founders and industry executives.
“We are thankful for the strong support of our existing investors and are excited to add a select group of new investors,” says Brian Hermelin, co-founder and managing partner at Rockbridge Growth Equity. “We are proud to be growing the firm on a strong foundation in our principals’ collective track record, built on over 50 years of investing and business building experience. With this new fund, we will continue to support a talented set of entrepreneurs and special, leading companies that seek to accelerate growth and achieve long-term outperformance.”
Since its founding in 2007, Rockbridge Growth Equity has long benefited from its strategic relationship with the Rock Family of Companies, which include companies such as Rocket Mortgage, Stock X, Amrock, the Cleveland Cavaliers and more than 100 other companies. Rockbridge Growth Equity’s relationship with the Rock Family of Companies allows the firm to leverage technology and other capabilities to provide value to both portfolio companies and investors.
Fund II has already made four platform investments: ProSites, a provider of subscription-based digital marketing solutions to community professionals such as dentists, CPAs, and other medical providers across North America; Quartile, a provider of software that optimises ad bidding strategies and delivers campaign reporting analytics on behalf of small to medium sized e-commerce sellers; White Glove, a digital marketing company specialising in identifying and marketing to potential clients on behalf of financial advisors; and RB Home Services, a holding company established to form a national services provider in the Home Services industry, focused on clean air and water for homes and public buildings.
“We believe that the success of the fundraising is a direct result of the performance and hard work of our portfolio companies and their leadership teams,” says Kevin Prokop, co-founder and managing partner at Rockbridge Growth Equity. “Each year, we’re fortunate to partner with a small number of innovative entrepreneurs who are building exceptional platforms. We’re excited to build on our track record of growing and growing with leading-edge companies with this new fund.”
Rockbridge Growth Equity currently manages a portfolio of nine companies. Since its founding, the firm has invested in companies with a combined enterprise value of more than USD1.25 billion.
Lazard acted as the exclusive placement advisor to Fund II. Kirkland & Ellis LLP and Honigman LLP served as legal counsel.