The Riverside Company Raises $418M For First Non-Control Investment Fund

Apr 17 2017 | 5:12pm ET

Global private equity firm The Riverside Company has completed fundraising for its first non-control investment fund, raising $418 million in total investable capital (including separately managed accounts) and easily surpassing its target of $350 million.

The new fund, named Riverside Strategic Capital Fund (RSCF) will make non-control structured equity investments in growing companies with over $5 million of EBITDA, the company said in a statement. RSCF initiated its investment activities in 2015, and already has completed six transactions from the new vehicle. Ultimately, Riverside expects to carry a diversified portfolio of up to 15 companies based in North America and selectively in Europe.

Investors reportedly include the New Mexico Educational Retirement Board, Northwestern Mutual and Phoenix Life.

“We’ve seen increasing demand from business owners for the flexible capital provided by RSCF,” said 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.”

Concurrent with the conclusion of RSCF I fundraising, Riverside promoted RSCF Transactors Jeffrey Gordon to partner and Jay Reynolds to principal. In addition to their roles with RSCF, Gordon leads the firm’s specialty manufacturing and distribution investment efforts and helps evaluate investment opportunities in the consumer goods sector, while Reynolds lends his expertise to support Riverside’s healthcare and software industry specializations.

“We are proud of the exceptional team we’ve built with RSCF,” said co-fund manager Hal Greenberg. “Jeffrey and Jay have been instrumental to all the success we’ve enjoyed and we’re proud to have them as an integral part of the Riverside family.”

Founded in 1988, Riverside has more than 20 transacting partners globally focused on making control and non-control investments in growing businesses valued at up to $400 million. Since inception, Riverside has invested in more than 460 transactions and its portfolio currently includes more than 80 companies.

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