Hidden River Strategic Capital has held an above-target close of its inaugural fund, Hidden River Strategic Capital I LP, with $245 million of committed capital.
Hidden River invests from $5 million to $25 million of junior debt and preferred equity in companies that have more than $10 million in revenue and positive cash flow across a range of industries. Many Hidden River transactions are used for growth capital, acquisitions, and inactive shareholder recapitalizations.
The firm was founded in 2021 by Steve Gord, Todd Morrissey and Kevin Condon and is headquartered near Philadelphia in Chesterbrook, Pennsylvania. Messrs. Gord and Condon previously worked together at Philadelphia-based Boathouse Capital, and Mr. Morrissey is a former partner at Philadelphia-based LLR Partners.
“Private lower middle market businesses tend to face a funding void between the often rigid investment approaches of traditional credit funds and the overly dilutive, controlling approaches of growth equity and buyout funds,” said Mr. Gord. “We started Hidden River to address this gap in the market with our structured capital offering – flexible, hybrid debt and equity.”
“Throughout their investment careers, our founders have consistently seen small companies struggle to find the right partner when the capital need sits somewhere between the traditional boxes of mezzanine debt and growth equity,” said Graham Bachman, a managing director and head of business development at Hidden River. “We look forward to providing funding solutions to owner-operators that don’t saddle them with inflexible debt on the one hand or crowd them out as leaders of their business on the other.”
“We are grateful to our limited partners for their support and belief in our approach and are excited to execute on our differentiated strategy,” added Mr. Gord.
To date, Hidden River has not closed on any investments for Fund I.
© 2023 Private Equity Professional | June 14, 2023
