Riverside Wraps $400M Fund
PE appears to be getting more attention from LPs as the economy rebounds, judging by some recent closes
January 6, 2010
Private equity, it seems, has kicked off 2010 right.
Amidst a flurry of deal announcements, placement agent Atlantic-Pacific Capital and Riverside Partners announced the private-equity firm closed a $406 million lower-middle-market LBO fund. Initially, when the fund launched, its target was $325 million.
“It was a challenging year to raise a fund,” said Riverside general partner David Belluck.
Riverside Partners had only once worked with a placement agent to corral capital for its third fund, Belluck said, and for the fourth fund, it switched to Atlantic-Pacific after 2008’s attempts to raise funds from the usual Riverside supporters prompted the PE firm to bolster its cash reserves.
The fund will continue to make control investments in lower-middle-market healthcare and technology companies, as has been Riverside’s MO in recent years.
Previously, Riverside Partners had raised $225 million in its Riverside Fund III. Founded in 1989, the PE firm has managed more than $500 million in investments.
Last year, Riverside Partners’ portfolio companies SIXNET and Alteris Renewables bough JBM Electronics and Renewable Power Systems, respectively. The PE firm also made separate investments in Vocollect and IZI Medical Products, both in the healthcare industry.
Lately, private-equity firms have been getting better receptions from would-be investors as the economy has warmed. Littlejohn & Co. closed its fourth fund late last year, in excess of $615 million. Atlas Holdings filed with the SEC to launch its debut third-party fund, which looks to take in $350 million.
Marlin Management Co. also recently completed fundraising for its third buyout fund, raising a total of $650 billion. And the Audax Group is fundraising for its third mezzanine vehicle, targeting $750 million.
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