The Riverside Company has surged past its target for its latest North American buyout fund, which it expects to close May 31, according to sources close to the effort. The lower mid-market buyout specialist has raised $950 million, $50 million more than its original target, the source said.
That means the New York-based firm has raised roughly $50 million since January, when Buyouts reported it had reached its target. Riverside began raising the fund early last year, and the fund’s hard-cap is $1.25 billion.
Riverside Capital Appreciation Fund V LP has a management fee of 2.25 percent, a 25 percent carry fee and an 8 percent preferred return fee. If the fund does not return 2x its investors money, profits are refunded to limited partners to the point that either their returns equal 2x or Riverside’s carry works out to 20 percent.
Riverside professionals managing the fund are targeting companies with enterprise values under $150 million that are generating annual EBITDA in the $5 million to $15 million range. The North American team has made two deals so far this year. First, it purchased Sencore Inc., a Sioux Falls, S.D.-based electronics company, in late January. Then, on April 2, it announced the add-on acquisition of Blendco Systems LLC, a Bristol, Pa.-based cleaning products producer, by portfolio company DuBois Chemicals. Riverside is also in the market with its fifth European buyout fund, Riverside Europe Fund IV, which is pursuing an identical strategy there.
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