Rockbridge Growth Equity, a Detroit‐based private equity firm, has completed a $355-million transaction in which a consortium of blue‐chip institutional investors agreed to acquire an interest in four Rockbridge companies as well as seed new platform investments.
Rockbridge will continue to manage the four businesses through a newly formed continuation fund vehicle, RB Equity Fund I. StepStone Group led the transaction. The consortium of institutional investors also included Aberdeen Standard Investments, HSBC, Lexington Partners, and LGT Capital Partners.
In addition, Rockbridge has established RB Equity Fund II, to continue its strategy of making control and minority equity investments in lower middle market services businesses headquartered in North America.
The initial Fund II investors are the Fund I investors and an investment entity affiliated with Dan Gilbert, founder and chairman of Quicken Loans Inc., which will become a special limited partner in Fund II.
Fund II will continue to target growth-oriented investments across four core industry verticals — digital media and e‐commerce, technology‐enabled products and services, fintech, and consumer services.
Rockbridge was established in 2007 by Brian Hermelin and Kevin Prokop, in partnership with Gilbert. Since its inception, Rockbridge and its affiliates have deployed approximately $590 million across 13 platform investments. Rockbridge invests in fast‐growing service businesses that can benefit from its operational skills and collaboration with the Rock Family of Companies.
“Our vision has always been to create a leading private equity firm based in Detroit focused on investing in fast-growing services businesses across North America,” says Kevin Prokop, co‐founder of Rockbridge. “This transaction is a big step in reaching that vision.”
StepStone Group was founded in 2006 and operates headquarters in New York City and La Jolla, Calif. It has 300 employees and total assets of around $130 billion.