Riata Closes Newest Fund Above Hard Cap

Riata Closes Newest Fund Above Hard Cap

The firm's second fund has already invested in three new platforms and deployed 50% of its capital

Riata Capital Group (RCG) has closed its second fund, RCG Equity Fund II LP, above its hard cap with capital commitments of $285 million.

RCG makes control and non-control equity investments of $25 million to $150 million in companies with $5 million to $30 million of EBITDA and enterprise values of $25 million to $300 million. Sectors of interest include business services, consumer, and healthcare services. RCG’s investment types include recapitalizations, buyouts, carve-outs, CEO-led buy and builds, and growth capital.

RCG is expected to acquire six platform companies for RCG II and has already deployed 50% of its capital in three platforms.

“We are very pleased with the support of both our existing and new limited partners, allowing us to exceed our target and hard cap in what is a challenging fundraising market,” said Jeff Fronterhouse, a managing partner of RCG. “We attribute this to the compelling performance of the investments we’ve made from RCG II, as well as delivering liquidity and value creation across the rest of our portfolio. RCG is well-positioned to complete the deployment of RCG II; as well as execute the larger strategy of building the Firm into a market-leading manager in the lower-end of the middle market, delivering strong and consistent results to our investors.”

RCG was founded in January 2015 by managing partners Jeff Fronterhouse and Barron Fletcher. In 1999, Mr. Fronterhouse co-founded Dallas-based Brazos Private Equity, which invested more than $1 billion of equity capital in 80 platforms and add-on acquisitions across three private equity funds. Similarly, Mr. Fletcher founded Dallas-based Parallel Investment Partners in 1999 which invested over $330 million of equity capital in 27 platforms and 23 add-on acquisitions across two private equity funds. In 2022, Blake Battaglia joined the firm as a managing partner after spending 2 years at Dallas-based Delta-v Capital and 19 years at Boston-based ABRY Partners.

Raymond James Private Capital Advisory and Probitas Partners were the advisors to RCG on this fundraise.

© 2024 Private Equity Professional | May 31, 2024

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