The Riverside Company has completed fundraising for Riverside Micro-Cap Fund IV (RMCF IV). The new fund closed at its hard cap with $650 million in capital commitments. The original target was $500 million. Riverside’s earlier fund, Riverside Micro-Cap Fund III, closed in July 2014 at its hard cap with $350 million in capital commitments.
Riverside’s micro-cap funds (RMCF) were launched in 2005. Since then, the RMCF team has acquired over 50 platform companies and exited over 20 platforms. RMCF’s investment strategy is to drive significant improvements in companies’ operations, management teams, pricing and/or infrastructure and seeks to grow EBITDA both organically and through add-on acquisitions. Like its earlier funds, RMCF IV will make control buyouts of companies with up to $7 million of EBITDA.
“The RMCF model has been exceedingly successful. In fact, it has helped refine how Riverside approaches all of its investing,” said Riverside Co-CEO Béla Szigethy. “We love helping companies become bigger and better by applying our extensive global resources and deep experience to the unique challenges facing smaller enterprises.”
Some of RMCF IV’s investors include Makena Capital, clients of Partners Capital Investment Group, the State of Michigan Retirement System, and clients of Willis Towers Watson. “We are proud to be working with many new investors as well as many returning ones,” said Erick Bronner, Global Head of Fundraising and Investor Relations. “We look forward to a successful partnership with them.”
“We’re extremely pleased to have earned the trust of so many sophisticated investors,” said Riverside Co-CEO Stewart Kohl. “RMCF’s focus on smaller, faster-growing middle market companies provides ample opportunity for growth.”
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 440 transactions. The firm’s international portfolio includes more than 80 companies. The firm is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
© 2016 Private Equity Professional • 9-23-16