The Riverside Company has held a final hard cap close of Riverside Micro-Cap Fund V (RMCF V) with capital commitments of $1.2 billion. This fundraise was completed in less than four months and demand exceeded the hard cap by more than 50%.
Riverside’s micro-cap funds (RMCF) were launched in 2005 and have acquired over 55 platform companies and 75 add-ons and have exited more than 30 platforms, including Tate’s Bake Shop (sold to publicly-traded Mondelēz International in June 2018) and Alchemy Systems (sold to publicly-traded Intertek earlier this month). Similar to prior funds, RMCF V invests in North American companies with up to $10 million of EBITDA. Riverside’s earlier fund, Riverside Micro-Cap Fund IV, held a final close in September 2016 at the hard cap of $650 million.
“This level of investor support is the direct result of the quality of work done by the RMCF team. The RMCF platform investments have grown sales at a CAGR of 23% since the fund’s inception and equally impressive, have organically grown employee headcount by 27% at the portfolio company level,” said Riverside’s Co-CEO Stewart Kohl. “This is a remarkable body of work, and it has been most gratifying to see how well these companies have flourished.”
“We’re delighted to announce the first and final closing of our fifth fund and equally as grateful for the overwhelming response from both new and existing investors,” said RMCF Managing Partner Loren Schlachet. “We’re proud to have built such a strong team over the last fourteen years that is committed to finding, investing and growing businesses.”
“Our approach to the middle market has been consistent for the past 30 years, and RMCF V is a perfect example of that,” said Riverside’s Co-CEO Bèla Szigethy. “Our investments are built on growth, and we strive to continually make companies bigger and better.”
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. The firm is headquartered in New York with 16 additional US and international offices (www.riversidecompany.com).
© 2018 Private Equity Professional | August 28, 2018