The Riverside Company has completed fundraising for its latest buyout fund, Riverside Asia-Pacific Fund II (RAF II) with $235 million of capital commitments, a 57% increase over its $150 million target. The new fund makes control investments in companies with less than $15 million in EBITDA in the developed economies of the Asia-Pacific region.
“Buyouts in the smaller end of the middle market are still a relatively new business in the Asia-Pacific region,” said Riverside Co-CEO Stewart Kohl. “Because of that, there are some remarkable opportunities to grow outstanding companies that meet our criteria.”
RAF II follows the strategy of its predecessor fund, targeting healthy companies that can benefit from the firm’s global footprint and operating resources to drive growth and complete strategic add-on investments. The RAF team is led by Fund Manager Stuart Baxter, who has been with Riverside since 1997 and has led RAF since its inception.
“Riverside often partners with family-founded companies, helping them institutionalize their business and globalize their addressable markets. We are finding business owners all across the Asia-Pacific region who seek optimal timing for liquidity while also building sustainable legacies upon their exit,” said Mr. Baxter.
The fund’s investor base is composed of institutions in North America, Europe and the Asia-Pacific region, including: Babson Capital Management as Investment Advisor to Massachusetts Mutual Life Insurance Company; Clients of Macquarie Investment Management; Commonwealth Superannuation Corporation; Development Bank of Japan; and Munich Private Equity Partners.
“We are very pleased with the support we received from our existing Riverside investors along with new investors who comprise nearly 30% of total limited partner commitments,” said Erick Bronner, Global Head of Fundraising and Investor Relations. “RAF II was able to meet the high bar set by some of the most discerning investors in the world.”
The Riverside Company is focused on the smaller end of the middle market and invests in businesses valued at up to $250 million (€200 million in Europe). Since 1988, the firm has invested in more than 340 transactions with a total enterprise value of more than $6 billion. The firm’s current portfolio includes more than 70 companies. The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
“RAF I was a trendsetting fund, and we’ve enjoyed a lot of success since beginning to invest in the region in 2007,” said Riverside Co-CEO Béla Szigethy. “We’re excited about building on that success with RAF II.”
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-14-14