Riverside Company Achieves Major Milestone with Fund Closure
The Riverside Company Successfully Closes Value Fund II
The Riverside Company, a well-known global investment firm that focuses on lower middle market opportunities, recently announced the successful final close of its Riverside Value Fund II (RVF II) at its hard cap of $750 million. This significant milestone is remarkable as RVF II was oversubscribed, closing at more than double the size of its predecessor fund, RVF I, which had a final close at $350 million.
Investment Strategy and Focus
Riverside Value Fund II aims to invest in North American businesses that demonstrate potential for growth and operational transformation amid durable, expanding market conditions. The fund provides flexible capital solutions tailored for businesses at crucial transition points. Its diverse portfolio spans various industries, including business services, specialty manufacturing, value-added distribution, and financial services. The Riverside team works collaboratively with management to implement strategic plans that promote aggressive growth.
Testimonials from Leadership
Riverside Managing Partner Sean Ozbolt expressed gratitude for the trust established with both new and existing investors. He highlighted the importance of a shared philosophy centered around operational excellence as a catalyst for sustainable growth. Ozbolt stated, "We are humbled by the confidence shown by an experienced group of investors in RVF II, and we appreciate the success demonstrated by our partner companies that facilitated achieving this milestone."
Dedicated Team Driving Success
Joining Ozbolt in the leadership of the RVF investment team are Managing Partner Ron Sansom, along with Partners Andrew Fohrer and Craig Kahler. Their combined expertise is bolstered by Riverside's extensive global platform, which includes a 23-person dedicated origination team and a robust group of over 50 operating professionals.
Identifying Opportunities in the Lower Middle Market
Riverside Co-CEO Stewart Kohl commented on the lower middle market's potential, stating, "This sector serves a diverse range of companies navigating complex situations, including carve-outs, family-owned business transitions, and leadership changes. Our platform seeks to uncover hidden value while collaborating closely with management partners to accelerate both revenue and earnings quality."
Fund Performance and Impact
Over the past year, Riverside Value Fund has successfully completed transactions exceeding $1 billion in enterprise value. This includes a mix of new platform investments, add-on acquisitions, and successful exits. Additionally, Riverside continues to foster its partnership with Ownership Works, promoting broad-based employee equity ownership plans at numerous portfolio firms. To date, over 1,100 staff members from RVF partner companies have acquired an equity stake in their businesses, showcasing Riverside’s commitment to shared success.
Investor Confidence and Future Goals
Co-CEO Béla Szigethy remarked on the impressive reception from limited partners, stating, "The RVF team has a proven track record of spotting value in complex situations which facilitated the success of our second fund. An oversubscribed fund is a testament to the faith investors have in Riverside, and we are honored to partner with those attuned to our vision moving forward."
About The Riverside Company
The Riverside Company is a leading global investment firm dedicated to empowering business owners and their employees through transformative growth and value creation. With a history that dates back to 1988, Riverside has made more than 1,000 investments across various industries and currently manages a portfolio that includes over 140 companies. For further details about Riverside's investment strategies and successes, please visit www.riversidecompany.com.
Contact Information
Holly Mueller
Marketing Consultant
The Riverside Company
216.535.2236
hmueller@riversidecompany.com
Frequently Asked Questions
What was the total close amount for the Riverside Value Fund II?
The Riverside Value Fund II successfully closed at its hard cap of $750 million.
What industries does Riverside Value Fund II invest in?
The fund primarily targets industries such as business services, specialty manufacturing, value-added distribution, and financial services.
Who are the key leaders of the Riverside Value Fund investment team?
Key leaders include Managing Partner Sean Ozbolt, along with Managing Partner Ron Sansom, and Partners Andrew Fohrer and Craig Kahler.
How many transactions did the fund complete in the last year?
In the last twelve months, RVF completed transactions totaling over $1 billion in enterprise value.
What is the Riverside Company’s primary mission?
The Riverside Company aims to be a leading investment firm focused on transformative growth and creating lasting value for business owners and their employees.
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