Riverside Closes Non Control Fund
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Riverside Closes Non Control Fund

The Riverside Company has completed fundraising for its first non-control investment fund, Riverside Strategic Capital Fund (RSCF) with $418 million in capital. The target for the new fund was $350 million.

RSCF makes non-control structured equity investments in companies with over $5 million of EBITDA. The new fund began making investments in 2015, and already has completed six transactions with an objective to construct a portfolio of up to 15 companies based in North America and Europe.

The six current portfolio companies are as follows: Alcohol Monitoring Systems (closed in December 2014) is a provider of electronic monitoring technologies used by state and local criminal justice agencies to monitor and manage alcohol use by criminal offenders (www.scramsystems.com); Fadata (December 2015) is a provider of life and property & casualty insurance software (www.fadata.eu); North American Dental Group (August 2015) is a provider of dental services with more than 65 clinics in Indiana, Michigan, Ohio and Pennsylvania (www.nadentalgroup.com); Bentley Laboratories (March 2016) is a formulator and outsourced manufacturer of products for the beauty and over-the-counter pharmaceutical industries (www.bentleylabs.com); True Health Diagnostics (January 2017) is a provider of diagnostic testing and laboratory services (www.truehealthdiag.com); and DuBois Chemicals (March 2017) is a provider of specialty chemical solutions used in metal finishing and paint pretreatment (www.duboischemicals.com).

Investors in RSCF include the New Mexico Educational Retirement Board, Northwestern Mutual and Phoenix Life. “We are very pleased to have attracted such a great collection of world-class investors,” said Erick Bronner, Riverside’s Global Head of Fundraising and Investor Relations. “RSCF’s limited partners include several new relationships to Riverside along with a number of longstanding supporters.”

According to Riverside, RSCF’s strategy is particularly beneficial to 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. “We’ve seen increasing demand from business owners for the flexible capital provided by RSCF,” said Co-Fund Manager George Cole. “It meets the unique needs of companies in this market segment where non-control capital can be hard to come by.”

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 460 transactions. The firm’s international portfolio includes more than 80 companies.

“The activities of RSCF benefit from Riverside’s global capabilities in origination, transaction execution and operations”, said Pam Hendrickson, Riverside’s Chief Operating Officer and Vice Chairman of Strategic Initiatives. “RSCF’s strategy is very consistent with what Riverside has been doing for nearly 30 years. We seek outstanding companies at the smaller end of the middle market, and provide the knowhow, international connections and capital to help them thrive.”

The Riverside Company is headquartered in New York with 16 additional US and international offices (www.riversidecompany.com).

© 2017 Private Equity Professional | April 18, 2017

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