The Riverside Co. has closed the $650 million Riverside Micro-Cap Fund IV. Riverside’s micro-cap funds back small businesses that have up to $7 million of Ebitda. Previous investments from the micro-cap funds have included The Dermatology Group, Kasasa by BancVue, and SafeBuilt
The RMCF IV exceeded its original target of $500 million and continues the investment thesis of Riverside’s previous micro-cap funds, the last of which was raised in 2014 and was considerably smaller at $350 million. The larger size of the new fund reflects Riverside’s increased commitment to small businesses. The new fund also represents a departure from the small business investment company (SBIC) model of the previous micro-cap funds. The Small Business Administration currently limits SBICs to $350 million.