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One Rock Capital Partners, LLC

Investment Strategy

One Rock's primary investment strategy is focused on investment opportunities where the vast majority of the anticipated value creation comes through operational changes and enhanced positioning. One Rock believes that the disciplined and proactive use of industry-specific Operating Partners is the most effective way to identify opportunities for operational improvement and implement those improvements to create value. One Rock believes that its investment approach can be effective in all points of the macroeconomic cycle, as the success of the strategy does not hinge on strong macroeconomic growth or a robust financing environment. One Rock has an affinity for complexity, and the success of its investments is largely driven by the fund’s ability to reposition the companies acquired and to make operational enhancements that ultimately result in enhanced equity value for portfolio companies.

Sample Transaction

One Rock’s acquisition and subsequent sale of Dixie Electric highlights. At the time of One Rock’s acquisition, Dixie was controlled by its second-generation family owner, a 30-year leader seeking retirement as part of a change-of-control transaction. Few bidders to the business were able to address the need for immediate management succession, allowing One Rock a fast-track opportunity to purchase the company. Dixie was misunderstood by much of the market – although the company featured EBITDA margins in excess of 25%, through close study of the financial statements and Dixie’s existing management process, One Rock and its Operating Partners were able to identify multiple internal improvement opportunities to drive organic EBITDA growth through data-driven management techniques focusing on equipment and labor productivity improvements. In addition, One Rock recognized a sustainable structural advantage in Dixie’s procurement model that would offer substantial integration synergies when consolidating similar service companies. This became a key value driver as One Rock led Dixie in five accretive acquisitions in under two years. After nearly two years of ownership, and a period of value creation in which EBITDA more than tripled, One Rock successfully completed the sale of Dixie to a sector-focused private equity fund, achieving attractive returns for Dixie’s investors.

AUM

431.5 million