Riverside Closes $650M Fourth Microcap Fund At Hard Cap

Sep 22 2016 | 8:27pm ET

The Riverside Company has raised $650 million in capital commitments for a new buyout fund dedicated to the smaller end of the middle market.

The new fund, named Riverside Micro-Cap Fund IV, is the company’s fourth to target control and non-control investments in growing companies with up to $7 million in annual EBITDA and valuations up to $400 million, an interesting niche that combines characteristics of private equity, venture and growth investing into a single vehicle. 

The fund closed at its hard cap, the company said. Riverside initially targeted $500 million for the fund, but demand from new and existing investors led to the vehicle being oversubscribed. Riverside’s last microcap fund, RMCF III, closed at $350 million in July 2014.

“We’re extremely pleased to have earned the trust of so many sophisticated investors,” said Riverside co-CEO Stewart Kohl. “RMCF’s focus on smaller, faster-growing middle market companies provides ample opportunity for growth.”

The firm’s RMCF family of funds was launched in 2005, and has since invested in more than 50 platforms with more than 20 exits. 

“The RMCF model has been exceedingly successful. In fact, it has helped refine how Riverside approaches all of its investing,” said Riverside co-CEO Béla Szigethy. “We love helping companies become bigger and better by applying our extensive global resources and deep experience to the unique challenges facing smaller enterprises.”

Founded in 1988 and headquartered in New York, The Riverside Company is a global private equity firm focused on acquiring and investing in growing businesses valued at up to $400 million. The company has invested in more than 440 transactions and holds more than 80 companies in its portfolio. 

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