The Riverside Company has completed fundraising for its first non-control investment fund, Riverside Strategic Capital Fund (RSCF), at USD418 million in total investable capital (including separately managed accounts), above its target of USD350 million.
RSCF makes non-control structured equity investments in growing companies with over USD5 million of EBITDA.
RSCF initiated its investment activities in 2015 and already has completed six transactions with an objective to construct a diversified portfolio of up to 15 companies based in North America and selectively in Europe.
RSCF’s strategy is beneficial to business owners and entrepreneurs who need capital for acquisition financing, liquidity events, organic growth initiatives and recapitalisations but do not want to sell a controlling stake.
“We’ve seen increasing demand from business owners for the flexible capital provided by RSCF,” says co-fund manager George Cole. “It meets the unique needs of companies in this market segment where non-control capital can be hard to come by.”
RSCF has attracted a number of investors, including New Mexico Educational Retirement Board, Northwestern Mutual and Phoenix Life.
Riverside’s global head of fundraising and investor relations Erick Bronner says RSCF is a great example of Riverside’s ability to meet the diverse demands of private equity investors by offering funds with different risk and return profiles.
“We are very pleased to have attracted such a great collection of world-class investors,” says Bronner. “RSCF’s limited partners include several new relationships to Riverside along with a number of longstanding supporters.”
Concurrent with the conclusion of RSCF I fundraising, Riverside promoted RSCF transactors Jeffrey Gordon to partner and Jay Reynolds to principal.
