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Riverside completes 15 acquisitions in 2009

Private equity firm Riverside completed 15 acquisitions in 2009, in addition to closing on its largest fund ever, increasing the value of its portfolio and exiting four platforms.

The 15 acquisitions were made up of six platforms and nine add-ons and put USD200m to work.
 
The six new platforms are: Sencore, a South Dakota-based designer and manufacturer of a variety of products serving the global video, audio and data transmission industries; Kaul, a German firm that makes anti-sticking and polishing agents used by the confectionary, agricultural and pharmaceutical industries; Crioestaminal, a Portuguese provider of umbilical cord blood preservation services; FairPay, a Texas-based reviewer and auditor of workers’ compensation bills; Precision Wire Components, an Oregonian designer and manufacturer of medical guidewires for use in a variety of non-invasive procedures; and PharmMD Solutions, a medication therapy management firm based in Tennessee.

Riverside joined a small class of LBO firms with 50 or more realizations. Riverside’s 50 exits over more than 20 years have generated a combined gross IRR of 55.3 per cent per centand a gross cash-on-cash return of 3.6x.

The firm closed fundraising at USD1.17bn for Riverside Capital Appreciation Fund V, well above its USD900m target in a year that saw LBO fundraising decline 73 per cent overall.

It exited four companies for a total equity gain of USD305m and increased the value of its portfolio by 6.5 per cent as of September 2009.
 
Thanks to deal flow that actually exceeded the level achieved in 2008, Riverside was one of the most active firms in the world last year. The firm’s 15 acquisitions helped it conclude the year with 70 companies in its global portfolio.
 
Béla Szigethy (pictured), Riverside co-chief executive, says: “It was certainly a challenging 2009, but we’re pleased with Riverside’s performance. It’s especially gratifying to have sold four companies during this most difficult environment for exits. Over the past 22 years Riverside has returned over USD1.9bn to our investors while remaining true to our core strategy of focusing exclusively on the smaller end of the middle market.”

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