ROCA Partners is a Los Angeles-based private equity investment firm focused on providing leading services companies with flexible capital and operational resources to accelerate growth.
We invest in services companies across the following industries: Education, Financial Services, Healthcare, Media, Restaurants, Retail, Technology, and Travel & Leisure. We are thematic investors who actively research consumer trends and leverage our research to identify companies that benefit from these trends.
We partner with entrepreneurial management teams who are committed to delivering compelling value to their customers as demonstrated by high customer advocacy. We bring significant experience as investors and operators and a data-driven analytical approach to help accelerate growth of our partner companies.
We work alongside management and existing shareholders to develop an investment structure to achieve their objectives and best position the company for growth. We invest in both control and non-control situations across a range of transaction types, including growth equity, low leverage buyout, and structured equity or debt investments.
We employ a data-driven analytical approach to evaluating and partnering with investments focused on Customer IRR™, which is the unlevered rate of return on customer acquisition spend. We work with our partner companies to develop strategies to optimize their Customer IRR™ profile.
Our research on demographic and behavioral trends affecting consumers enables us to proactively identify companies in sectors poised for growth.
Demand for services that support or enable our older population will grow as the 65+ population in the US doubles over the next 30 years to >80 million people.
Growing Wealth Gap
The widening income and wealth gap is continuing to bifurcate demand for services into premium and value with heightened risk to those services with models that are stuck in the middle.
Growing urban populations concentrated around commercial and transit hubs are strengthening the unit economics for service models, but also increasing the competitive intensity.
Rising Minority Buying Power
The purchasing power of certain ethnic minorities is outpacing the average consumer due to higher relative income and population growth, which is growing demand for culturally-tailored services.
Consumers are more mindful of wellness and self-directed for healthcare services. Demand is also growing due to increasing prevalence of chronic disease.
An important shift in consumer behavior is the transition to the experience economy whereby consumers are shifting their spend to services from goods recognizing that experiences provide more fun and fulfillment.
Reviews and other information shared online are enabling consumers to make more informed purchase decisions, which is strengthening the importance and mobility of brand value and advocacy.
Mobile applications and sharing-economy services are empowering consumers to be more efficient with both their time and spend by outsourcing more household or personal activities.
We have a differentiated capability in customer and marketing analytics to evaluate and enhance investments.
Customer IRR™ is the unlevered internal rate of return on a company's customer acquisition expenses. This is one of the most important metrics to evaluate the quality of a services business model and to project the company's financial performance.
Customer IRR™ encapsulates the key metrics that drive company performance for a services company including:
- the cost to acquire a customer (sales, marketing, investments in the brand)
- revenue per customer
- customer retention or frequency
- the cost to serve a customer
We analyze the Customer IRR™ profile for each customer segment, cohort and channel and evaluate the Customer IRR™ distribution along sensitivities to key assumptions to assess the attractiveness of the return profile. We are looking for opportunities with attractive customer-level unit economics that are both predictable and repeatable.
We are partners that help develop strategies to meaningfully improve the Customer IRR™ profile and competitive position for our investments and lend our experienced team, relationships and analytical resources to help accelerate growth.
We are a team of investors, entrepreneurs, operators and academics with expertise in growing services companies and capability in customer and marketing analytics.
RAVI YANG SARIN
Ravi Sarin is an Investor at ROCA Partners. Mr. Sarin previously was a Principal in the Private Equity Group at Ares Management. At Ares, Mr. Sarin helped lead investments in healthcare services, retail, and gaming, lodging & leisure among a few other sectors and served on the Board of Directors of Floor and Decor, Jacuzzi Brands, OB Hospitalist Group and Unified Physician Management. Prior to Ares, Mr. Sarin was a private equity investor at Bain Capital and a consultant at Bain & Company. Mr. Sarin has an MBA from Harvard Business School and an MS in Management Science & Engineering and a BS in Electrical Engineering from Stanford University.
James Stith is an Investor at ROCA Partners. Mr. Stith previously was the Senior Director of M&A at IAC/InterActiveCorp, a publicly-traded portfolio of consumer media and technology companies. At IAC, Mr. Stith helped lead investments and guide the M&A strategy. Prior to IAC, Mr. Stith was a founding executive of Carats & Cake (a leading marketplace for wedding vendors), a private equity investor at Ares Management, and an investment banker at Lehman Brothers. Mr. Stith has a BA in Economics and International Relations from the University of Pennsylvania.
Zach Goren is an Investor at ROCA Partners. Mr. Goren previously was the Director of Strategy and Business Development at MediaAlpha, a leading vertical specific advertising technology company. At MediaAlpha, Mr. Goren oversaw growth initiatives including new market entry, industry expansion and strategic partnership development. Prior to MediaAlpha, Mr. Goren was a real estate private equity investor at PICOA, a private equity investor at Ares Management, and an investment banker at Goldman Sachs. Mr. Goren has a BA in Business Economics from the University of California, Los Angeles.
Tara Brantley is an Investor at ROCA Partners. Ms. Brantley previously was a private equity investor at Oaktree Capital Management. Prior to Oaktree, Ms. Brantley was an investment banker at Gleacher & Company. Ms. Brantley has an MBA from Stanford Graduate School of Business and a BA in Economics from Yale University.
Jesse Sandoval leads Business Development at ROCA Partners and serves on the investment team. Prior to ROCA, Mr. Sandoval was a digital health executive and served as CEO of eTherapi and General Manager at Klara. Mr. Sandoval was previously on the investment team at Saban Capital Group and a consultant at The Wonderful Company. Mr. Sandoval started his career as a consultant at A.T. Kearney. Mr. Sandoval has an MA in Sociology, and a BA in Economics and International Relations from Stanford University.
9460 Wilshire Blvd, Suite 850
Beverly Hills, CA 90212