Rockbridge Growth Equity Secures $360 Million for RB Equity Fund III Amid Rising Demand

Rockbridge Growth Equity Secures $360 Million for RB Equity Fund III

In a notable advancement within the private equity landscape, Rockbridge Growth Equity Management, L.P. has triumphantly closed RB Equity Fund III, raising over $360 million, surpassing its initial target of $350 million. Following this successful close, Rockbridge now manages assets exceeding $1.7 billion, reasserting its position as a formidable player in middle-market private equity.

Brian Hermelin, Co-founder and Managing Partner at Rockbridge, expressed pride in this achievement, viewing it as a validation of the firm's sector-focused investment strategy and track record. "We are incredibly grateful for the support from both our long-time and new investors," he stated, emphasizing their eagerness to partner with new companies that can benefit from Rockbridge’s depth of industry knowledge.

The newly established Fund III will concentrate its efforts on four main sectors: e-Commerce and Marketing Services, Financial Services and Fintech, Tech-Enabled Products and Services, and Digital Media. This strategic focus leverages nearly two decades of investment experience that Rockbridge and its predecessors have amassed in these domains.

The fund attracted commitments from a varied mix of investors, including fund-of-funds, public pensions, insurance companies, consultants, multi-family offices, and industry executives. This diverse financial backing underscores the growing confidence in Rockbridge's approach to the market and its targeted sectors.

Since its inception in 2007, Rockbridge has maintained a notable position in the investment realm, successfully deploying $1.3 billion of capital across various ventures. This capital has included not only equity from the firm itself but also from co-investors, leading to a currently active portfolio comprising 13 companies.

To date, Fund III has already invested in four platform companies:
1. CheckedUp: A major player in the digital advertising space for pharmaceutical and medical device firms, especially at the Point of Care in the U.S.
2. AcquireUp Marketing: This company offers technology-driven marketing solutions tailored for financial advisors.
3. Vici Media: This firm specializes in marketing technology, providing white-label digital marketing and advertising solutions primarily for small to medium-sized businesses through local media companies.
4. FormativGroup: A platform offering enterprise application services designed to assist mid-market businesses in modernizing their operations through application integration, enhanced data architecture, and AI-driven workflows.

Kevin Prokop, another Co-founder and Managing Partner at Rockbridge, highlighted the excitement surrounding the investments made from Fund III. He expressed confidence in the fruitful collaborations ahead and reaffirmed Rockbridge's commitment to fostering robust partnerships with management teams to drive growth and innovation.

The strategic advantage of Rockbridge lies in its association with the Rock Family of Companies, which includes renowned names like Rocket Mortgage, StockX, and the Cleveland Cavaliers. This relationship not only provides access to capital but also enhances operational capabilities, offering significant value to Rockbridge's portfolio companies.

Looking ahead, Rockbridge aims to leverage this newly acquired capital to continue its tradition of fostering growth and innovation within its investment areas. The firm remains committed to partnering with enterprises poised for advancement, ensuring that both Rockbridge and its partners continue to thrive in the ever-evolving marketplace.

For more detailed information, please visit Rockbridge Growth Equity.