The Riverside Company raised more than $542 million for Riverside Micro-Fund IV, L.P., according to Form D filings with the U.S. Securities and Exchange Commission, exceeding the original target of $500 million. This is not a final close for the fund, which has a hard cap of $650 million, according to a person with knowledge of the situation.
The fund is overseen by managing partner Loren Schlachet. Leading the team and reporting to Schlachet is senior operating partner Jeff Goodman. Co-CEOs Stewart Kohl and Béla Szigethy are also involved.
Riverside’s first micro-cap fund (RMCF), which closed in 2006, represented an innovative strategy of targeting small companies, with revenues of $5 million to $25 million and EBITDA of up $3 million or less.
“Focusing on the smallest ‘micro’ deals was a fairly risky proposition back when RMCF started,” Szigethy said at the close of Micro-Cap Fund III. “Over time, our strong team has shown how careful investing and world-class operational resources can supercharge growth at these little companies.”
Photo: Béla Szigethy and Stewart Kohl of The Riverside Company