Riverside Closes Latest Fund Above Target at $1.5 Billion

Riverside Closes Latest Fund Above Target at $1.5 Billion

riverside nf2The Riverside Company has completed fundraising for its latest fund, Riverside Capital Appreciation Fund VI (RCAF VI) at $1.5 billion, 50% above its $1 billion target, making it the largest fund in the 25-year history of the firm. RCAF VI follows RCAF V, which closed in 2009 at $1.2 billion, 30% above its $900 million target.

“The fundraising environment has gotten considerably tougher over the 25 years we’ve been in business,” said Riverside Co-CEO Béla Szigethy. “Investors are rightfully demanding and very selective about where they entrust their money, and we’re delighted to have earned that trust.”

Riverside investors include public pensions, endowments and foundations, insurance companies, funds-of-funds, and other sources. RCAF VI investors include: clients of Altius Associates Ltd.; clients of GCM Customized Fund Investment Group, LP; Florida State Board of Administration; Makena Capital; State of Oregon; Employees Retirement System of Texas; and the Washington State Investment Board. Additionally, Riverside’s employees committed more than 4% of the RCAF VI capital, representing Riverside’s largest general partner commitment amount to date.

“We are very pleased with the strong support we received from our existing investors along with new investors who comprise more than 40% of total limited partner commitments,” said Erick Bronner, Global Head of Fundraising and Investor Relations.

As with earlier funds, RCAF VI will continue to acquire North American businesses with enterprise values of up to $250 million and EBITDA between $5 million and $25 million. During the course of ownership, Riverside seeks to double or triple EBITDA in its investments, using its operating resources to globalize businesses, drive organic growth, and complete strategic add-on investments.

“We have a track record of punching above our weight. We bring to the smaller end of the middle market a very large set of competencies that deliver unparalleled financial, originating, transacting and operating resources,” said Riverside Co-CEO Stewart Kohl. “Our global resources and exceptional transacting and operating models are supported by a remarkable back office team, making Riverside a truly distinctive player in the small-deal space. Our intense focus on smaller deals makes all the difference.”

The Riverside Capital Appreciation Fund team is led by Managing Partner Suzy Kriscunas, who has been with Riverside since 2001. “We’re excited about investing this fund,” said Ms. Kriscunas. “We’ve already started deploying RCAF VI, and we’re seeing tremendous opportunities to help companies thrive. With an exceptional global Riverside team supporting our RCAF professionals, we look forward to continuing to generate strong returns for our investors.”

The Riverside Company is focused on the smaller end of the middle market and invests in businesses valued at up to $250 million (€200 million in Europe). Since 1988, the firm has invested in more than 321 transactions with a total enterprise value of more than $6 billion. The firm’s current portfolio includes more than 70 companies. The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-9-14

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