Riverside closes first minority investment fund, backing six companies so far
Private equity firm the Riverside Co. has completed fundraising for its first non-control investment fund, Riverside Strategic Capital Fund (RSCF). The fund received approximately $418 million in total capital.
RSCF’s strategy is aimed at benefiting business owners and entrepreneurs who need capital for acquisition financing, liquidity events, organic growth initiatives and recapitalizations but do not want to sell a controlling stake. The fund targets growing companies with more than $5 million of Ebitda.
“We seek outstanding companies at the smaller end of the middle market, and provide the knowhow, international connections and capital to help them thrive,” states Riverside COO Pam Hendrickson. Hendrickson was recognized as 2017’s Most Influential Women in Mid-Market M&A by Mergers & Acquisitions.
RSCF is currently invested in six businesses, including: Alcohol Monitoring Systems, Bentley Laboratories, DuBois Chemicals, Fadata, North American Dental Group, and True Health Diagnostics. The fund closed six transactions with “an objective to construct a diversified portfolio of up to 15 companies based in North America and selectively in Europe.”
Riverside, one of the most active PE firms, recently sold a minority stake in its firm to private trust company Parkwood LLC. The sale comes as Riverside is looking to grow, similar to other firms such as Littlejohn & Co. LLC and Vista Equity Partners.
Private equity firms have been actively raising funds recently. In September 2016, Riverside closed a $650 million micro-cap fund to support small businesses. The PE firm also raised a growth fund in October 2016. Other recent capital raises include: The Carlyle Group’s (Nasdaq: CG) fourth distressed fund; Vector Capital’s fifth private equity fund; Monroe Capital LLC’s $800 million credit fund; and Chicago-based NXT Capital LLC’s fourth debt fund at $900 million.