RLH Equity Partners has held a final closing of RLH Investors III, L.P. (Fund 3) with total commitments of $380 million. Fund 3 was oversubscribed and required an increase in the fund’s original hard cap to accommodate strong investor interest.
The size of Fund 3 represents a more than 40 percent increase from the committed capital of RLH’s prior fund. The investor base for Fund 3 primarily consists of two dozen domestic and international public and private pension funds, foundations, funds-of-funds, and high net worth individuals.
According to RLH, the firm’s focus on creating value through rapid organic growth and conservative capital structures attracted strong support from both existing and new limited partners. The merits of RLH’s approach were demonstrated to prospective investors via the firm’s record of successful portfolio company exits throughout the firm’s history. Notably, RLH’s most recent five exits yielded an average gross multiple on investment (MOI) of 6.7x, with MOI’s ranging from 4.0x to 10.6x.
“We are grateful for our investors’ confidence in our seasoned team of investment professionals and the differentiated value-creation strategy that we have been successfully pursuing for the past three decades”, said J. Christopher Lewis, Managing Partner of RLH. “We also want to thank the outstanding entrepreneurs with whom we partner. Their vision, energy, and expertise are essential elements of the investment success we have enjoyed.”
Riordan, Lewis & Haden invests in high growth, lower middle market companies that have revenues from $20 million to $150 million. Sectors of interest include business services, healthcare, and government services. The firm currently manages over $700 million of assets and is actively seeking new portfolio companies. Riordan, Lewis & Haden is based in Los Angeles (www.rlhequity.com).
“We are pleased to have a fresh pool of capital to back high quality management teams in building distinctive, market-leading, high-growth enterprises. We have already completed several investments from Fund 3 in exciting businesses with revenue growth rates of 30% or more per year,” said RLH Managing Director Michel Glouchevitch.
© 2013 PEPD • Private Equity’s Leading News Magazine • 3-21-13