Lower middle market firm River Associates Investments (RAI) has closed its seventh fund – River VII, LP – with total commitments of $285 million. The new fund was raised in approximately eight months and exceeded the original $250 million target. RAI’s earlier fund closed at an above target $222 million in May 2012.
Capital commitments to Fund VII came from university endowments, public company pension plans, insurance companies and family offices, a number of whom were investors in previous RAI funds.
“We sincerely appreciate the support of our existing and new limited partners who see value in our time-tested track record and strategy,” said Mark Jones, Partner. “We are focused on continuing to differentiate ourselves with our lengthy tenure of supporting management teams of lower middle market companies. In a competitive marketplace, we will strive to utilize this capital to make strategic investments with the hope of generating strong returns for our dedicated investors. Furthermore, we look forward to continuing to form partnerships with talented management teams to help their respective companies reach their full potential.”
RAI invests in US and Canadian-based companies with revenues of $20 million to $100 million and EBITDA of $3 million to $12 million. Sectors of interest include niche manufacturing, high margin distribution, industrial services, and business services. The firm was founded in 1989 and to date has completed 80 investments, including platform and add-on acquisitions.
RAI has not yet made an investment through Fund VII. The firm’s four existing portfolio companies all come from prior funds and include TMI, a Pittsburg, PA-based provider of
industrial strip doors and soft wall curtains, engineered plastics and process isolation systems for cleanrooms and datacenters, acquired in October 2014; Wheat Montana, a Three Forks, MT-based provider of branded mill and bakery products, acquired in January 2015; Action Fabricators, a Grand Rapids, MI-based
converter of flexible materials, including tapes, adhesives, non-adhesive backed foams and other specialty materials, acquired in August 2015; and Weaver Leather, a Mt. Hope, OH-based
manufacturer and distributer of branded and non-branded leather, nylon/synthetic, hardware, and other products used in equine, livestock, pet, and arborist applications, acquired in February 2016.
RAI’s senior leadership – all of which have made significant personal capital commitments to Fund VII – is comprised of partners Jim Baker, Mike Brookshire, Mark Jones, Patten Pettway, and Craig Baker. The firm is based in Chattanooga, TN (www.riverassociatesllc.com).
RAI did not use a placement agent for this fundraise.
© 2017 Private Equity Professional | June 13, 2017