The Riverside Company has completed the fundraising for its latest fund, Riverside Capital Appreciation Fund VI (RCAF VI), at USD1.5bn, 50 per cent above its USD1bn target.
This makes it the largest fund in the 25-year history of the global private equity firm dedicated to the smaller end of the middle market.
Like all Riverside funds, RCAF VI targets healthy, growing companies that can benefit from the firm’s hands-on, global resources.
Riverside seeks to double or triple EBITDA in its investments, using its considerable operating resources to globalise businesses, drive organic growth, and complete strategic add-on investments. RCAF VI will continue to acquire North American businesses with enterprise values of up to USD250m and EBITDA between USD5m and USD25m.
“The fundraising environment has gotten considerably tougher over the 25 years we’ve been in business,” says Riverside co-chief executive Béla Szigethy. “Investors are rightfully demanding and very selective about where they entrust their money, and we’re delighted to have earned that trust.”
RCAF VI follows RCAF V, which closed in 2009 at USD1.17bn, 30 per cent above its USD900m target. RCAF is North America-focused, but Riverside also invests and has resources throughout Europe and the Asia-Pacific region.
“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,” says 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 RCAF team is led by managing partner Suzy Kriscunas, who has been with Riverside since 2001.
Riverside investors include public pensions, endowments and foundations, insurance companies, funds-of-funds, and other sources. RCAF VI investors include:
Clients of Altius Associates
Clients of GCM Customized Fund Investment Group
Florida State Board of Administration
Makena Capital
State of Oregon
Employees Retirement System of Texas
Washington State Investment Board
Additionally, Riverside’s employees committed more than four per cent of RCAF VI, representing Riverside’s largest general partner commitment amount to date.
