The Riverside Company has sold a non-voting minority stake to Parkwood to accelerate continuing growth.
Parkwood is a limited partner in multiple Riverside funds.
“Parkwood has a deep understanding of Riverside including our strategy, market leadership and culture,” says Riverside co-CEO Stewart Kohl. “This is a natural extension of our mutually beneficial relationship. I’ve long admired Parkwood chairman and CEO Morton Mandel as a mentor and role model, so we’re especially happy to have them as a partner in growth.”
Parkwood’s acquisition of just under 10 per cent of the firm will be all primary capital, with the investment being used to fuel growth. An employee option plan has also been established to retain and reward employees.
“This investment is a natural element of Riverside’s three-decades of growth and its position as a leader at the smaller end of the middle market,” says Riverside co-CEO Béla Szigethy. “We’re excited about getting more resources to help us become even more proficient at growing companies.”
Keefe, Bruyette & Woods and Jones Day advised Riverside on the investment.
