RLH Equity Partners has held a final closing of RLH Investors IV LP with total commitments of $510 million. The new fund was oversubscribed and required an increase in the fund’s original hard cap to accommodate investor interest. The firm’s earlier fund, RLH Investors III LP, closed with $380 million of commitments in March 2013.
RLH Equity Partners invests in high growth, lower middle market companies that have revenues from $30 million to $200 million. Sectors of interest include business services, healthcare, and government services. The firm is based in Los Angeles (www.rlhequity.com).
“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 more than 35 years,” said J. Christopher Lewis, Managing Partner of RLH. The investor base for Fund 4 primarily consists of two dozen highly-regarded domestic and international public and private pension funds, foundations, funds-of-funds, and high net worth individuals.”
The strong raise for Fund 4 was positively impacted by the firm’s historic investment performance. RLH’s most recent seven exits yielded an average gross multiple on investment (MOI) of 4.6x, with MOI’s ranging from 2.5x to 8.7x.
“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 our first investment from Fund 4 and have a sizable pipeline of promising opportunities with which we are now actively engaged,” said RLH Managing Director Michel Glouchevitch.
RLH currently manages approximately $1 billion of assets and is actively seeking new portfolio companies.
© 2017 Private Equity Professional | October 20, 2017