Riverside raises largest European fund to date

The Riverside Company, a global private equity firm focused on the smaller end of the middle market, has completed fundraising for its Riverside Europe Fund VI (REF VI). 

The firm’s latest buyout vehicle closed on EUR465 million of capital commitments, nearly 40 per cent more than its predecessor, making it the largest fund the firm has raised in Europe to date.

REF VI follows the same investment strategy as previous funds and remains focused on acquiring “little leaders,” partnering with strong management teams to make those companies bigger and better, often growing them internationally. The fund targets European businesses, generally with EBITDA between EUR5 million and EUR30 million.

“We are grateful to our existing investors for their continued support and delighted to welcome many new LPs to the fund,” says Riverside Europe Managing Partner Karsten Langer. “Their support is a testimony to the quality of the team we have in Europe, our track record over recent years and the strong performance, resilience and adaptability our portfolio companies have shown since the onset of the pandemic.”

REF VI has already invested in three platforms. Bike24 and Toolport are e-commerce companies serving the cycling and commercial and residential tents sectors, respectively. Additionally, HealthTech BioActives manufactures pharmaceutical ingredients for a wide range of customers around the globe. These three investments have already grown sales by more than 38 per cent and EBITDA by 46 per cent since acquisition, delivering very strong performance through the Covid-19 pandemic.

“The Riverside Europe team has shown immense professionalism, ambition and discipline, which is reflected in this strong result,” says Riverside Co-CEO Béla Szigethy. “I commend them for their hard work on this fundraising, as well as for the stellar performance at the companies backed by REF VI.”

Existing Riverside investors increased their commitments to REF VI by 24 per cent compared to Riverside Europe Fund V (REF V), while 23 per cent of commitments to the fund came from 20 new investors.

“We’ve been active in Europe for more than three decades, which allows us to have an experienced team of originators, investors, operators, robust processes and a recognised brand,” says Riverside Co-CEO Stewart Kohl. “I’m excited about seeing the Riverside Europe team continue to thrive, applying our pan-European approach to internationalising outstanding companies across the continent.”