Riverside Backs AssetIntel

The investment gives the infrastructure software provider capital for product expansion and acquisitions as it serves a growing roster of state and federal transportation agencies.

The Riverside Company has made an investment in AssetIntel, a provider of infrastructure inspection and asset management software.

AssetIntel’s software is used by state departments of transportation, federal agencies, transit authorities and municipalities to inspect, manage and plan for infrastructure assets including bridges, tunnels, dams and railways. Specifically, the company’s platform functions as an inventory listing, workflow and compliance system of record, often maintaining years of historical inspection records, asset condition trends and deterioration data for its customers.

The company’s product suite includes inspectX, a field inspection and reporting tool that supports compliance with federal bridge inspection standards; emergencyX, which supports disaster event monitoring and emergency response coordination; manageX, a capital planning tool for prioritizing maintenance and investment decisions; and SNBIX, designed to help agencies transform legacy National Bridge Inventory (NBI) data to align with the newer Specifications for the National Bridge Inventory (SNBI) data standards.

AssetIntel was founded in 2016 by CEO Hooman Parvardeh and has grown to serve 23 agencies across the United States and Canada, managing more than 170,000 assets and supporting more than 320,000 offline inspections. Customers include the Tennessee, Virginia, Kansas, Georgia and Arkansas departments of transportation, along with the city of Los Angeles.

“AssetIntel operates as a system of record that helps asset owners inspect and maintain critical infrastructure assets amid increasing federal regulatory complexity and growing demand for data-driven asset management,” said Loren Schlachet, a managing partner at Riverside. “The company has a compelling value proposition and a history of exceptional customer retention and strong growth.”

“We are excited to have formed this partnership with AssetIntel, which sits at the intersection of Gov Tech and Construction Tech, two areas where we have been an active investor for over a decade,” said Joe Manning, a senior partner at Riverside, and Chris Shea, a principal at Riverside in a released statement. “We see significant potential to expand the company’s market reach and accelerate growth through both product innovation and M&A.”

Riverside’s investment in AssetIntel comes as transportation agencies face mounting pressure to modernize asset management amid the scale of the country’s aging infrastructure. The United States will need significant ongoing investment in transportation infrastructure that was largely built in the mid-20th century, according to McKinsey’s “The Infrastructure Moment”, which projects that failing to modernize roads, bridges and other core systems could cost the economy $10 trillion in lost gross domestic product by 2039. McKinsey has also pointed to digital and AI-enabled monitoring tools as a growing driver of efficiency in infrastructure operations, with predictive maintenance applications in transportation showing measurable gains in reliability and cost reduction in early deployments.

“Since founding AssetIntel, our mission has been to modernize how transportation agencies inspect, manage and plan for critical infrastructure assets,” said Mr. Parvardeh. “We are excited to partner with Riverside as we continue expanding our platform, supporting additional infrastructure asset classes, and helping infrastructure owners modernize and strengthen their asset management operations.”

The Riverside Company invests in lower middle-market companies with EBITDA of up to $35 million and valuations of up to $400 million. The firm focuses on business services, consumer brands, education and training, franchisors, healthcare, software and IT, and specialty manufacturing.

The specific strategies of Riverside include five control products: Riverside Capital Appreciation typically targets North American platform investments with $10 million to $35 million in EBITDA; Riverside Micro-Cap generally targets North American platform investments with less than $10 million in EBITDA; Riverside Europe invests in European companies with generally less than €30 million in EBITDA; Riverside Australia invests in Australia- and New Zealand-based companies with LTM EBITDA of between A$3 million and A$20 million; and Riverside Value generally invests in businesses facing special situations or unique challenges with $75 million or more in revenue.

Riverside also offers two non-control options including Riverside Strategic Capital which makes minority investments in companies headquartered in the U.S., Canada or Europe with $5 million or more in EBITDA; and Riverside Acceleration Capital which makes growth capital investments in companies operating in the software sector with $3 million to $15 million in recurring revenue based in the U.S., Canada and Europe.

The investment in AssetIntel marks the latest in Riverside’s software and IT sector specialization, where the firm has completed more than 300 platform and add-on investments.

Working with Mr. Schlachet on the AssetIntel transaction were Mr. Manning, Mr. Shea, Assistant Vice President Tom Hillebrecht, Associate Megan Dorogi, Analyst Aneesh Bafna, Operating Partner Jim Murphy and Finance Director Chrissie Yim.

The Riverside Company was founded in 1988 and is headquartered in New York City.