Chattanooga, Tennessee-based River Associates Investments, a lower-middle market private equity firm, has raised $285 million for its oversubscribed seventh fund, beating its initial $250 million target. The limited partners of River VII LP include university endowments, public company pension plans, insurance companies and family offices. River Associates focuses on companies in the U.S. and Canada that have an EBITDA between $3 million and $12 million. No placement agent was used. Proskauer Rose LLP provided legal counsel for the fund.
Chattanooga, TN, June 9, 2017 – River Associates Investments (“River Associates” or “RAI”), a longstanding lower middle market private equity firm, today announced the successful closing of its seventh committed capital investment fund, River VII, LP, with total commitments of $285 million. Raised in approximately eight months, the fund was oversubscribed and exceeded the original $250 million target.
Commitments to River VII came from well-respected university endowments, public company pension plans, insurance companies and family offices, a number of whom were investors in previous River Associates’ funds. Consistent with prior funds, the partners of River Associates have made significant personal capital commitments to River VII.
River VII will continue RAI’s almost 28-year strategy of control buyouts, in partnership with management teams, of lower middle market companies. River Associates generally targets investments in platform companies with $3-12 million of operating cash flow (EBITDA) located in the U.S. or Canada.
“We sincerely appreciate the support of our existing and new limited partners who see value in our time-tested track record and strategy,” said Mark Jones, Partner of RAI. “We are focused on continuing to differentiate ourselves with our lengthy tenure of supporting management teams of lower middle market companies. In a competitive marketplace, we will strive to utilize this capital to make strategic investments with the hope of generating strong returns for our dedicated investors. Furthermore, we look forward to continuing to form partnerships with talented management teams to help their respective companies reach their full potential.”
Founded in 1989, River Associates has invested in a total of 80 platform and add-on companies located in 23 different states and two Canadian provinces. The firm takes an opportunistic approach and invests in a wide array of sectors including manufacturing, distribution, industrial services and business services. In many instances, RAI employs a “buy & build” strategy in an effort to grow platform companies via strategic acquisition. RAI’s senior leadership is comprised of partners Jim Baker, Mike Brookshire, Mark Jones, Patten Pettway, and Craig Baker. These five partners have over 100 years combined experience working together. The firm prides itself on its management friendly and highly ethical approach towards business.
Proskauer Rose LLP served as fund counsel for River VII, LP. RAI was not represented by a placement agent.
About River Associates Investments
River Associates Investments (“River”) is a private equity firm based in Chattanooga, TN, that focuses exclusively on investing in the lower middle-market and has served as a financial sponsor partner for management teams for over 25 years. Target businesses can be privately held, private equity-backed, or divestitures from larger companies. River is opportunistic as to industry and has invested in numerous manufacturers, high margin distributors, industrial service providers and business service companies. The firm targets U.S. & Canadian companies typically with EBITDA in the $3-12 million range. Since its founding in 1989, River has initiated 80 transactions, many of which have been strategic add-on acquisitions to platform companies. The partners at River have collectively worked together for over one hundred years. For more information about River, please visit www.riverassociatesllc.com.