The Riverside Co. has closed a micro-cap fund with $350 million in commitments during the best fundraising environment since 2008.
As a small business investment company (SBIC), Riverside Micro-Cap Fund III will combine its $350 million with $150 million from the U.S. Small Business Administration for a $500 million fund. Mergers & Acquisitions reported in April that Riverside was raising the fund.
The fund plans to invest in U.S. companies with up to $5 million in Ebitda. Investors include BMO Harris Bank, clients of Cliffwater LLC, Makena Capital, clients of Meketa Investment group, clients of Partners Capital Investment Group and the state of Michigan Retirement Systems.
Riverside's previous micro-cap fund closed with $137 million in 2011. Cleveland and New York private equity firm Riverside focuses on acquiring and investing in businesses that are valued at up to $250 million. The firm closed its largest fund yet with $1.5 billion in January. The firm's recent investments include Sungear Inc., which was an add-on to H-D Advanced Manufacturing, and Diversified Property Solutions, which was tagged on to Paradigm Tax.