Riverside Credit Fund I raises $100 mln so far

  • Riverside Credit targets $250 mln to $500 mln with debut
  • Dobies, Gillis and Kilpatrick previously with NewStar
  • Marketing for RCS Fund I to be completed in 2018

Riverside Credit Solutions has raised $100 million toward a first close of its debut fund, a source said.

The first close is expected in October, the person said. Riverside is expected to complete marketing for the pool in 2018, the source said.

Riverside Credit Fund I is seeking to raise $250 million to $500 million for the pool, Buyouts reported in December. The fund will seek to invest in lower-middle-market companies with $5 million to $35 million of EBITDA, Buyouts said. The fund will originate loans from its PE relationships and expects about 80 percent to go to private-equity-backed companies, the story said.

Riverside Credit, headed by David Dobies, began fundraising for the pool in January. Dobies, a co-founder and former co-head of NewStar Financial, left the Boston lender in 2013. He joined TCW Group in early 2014 as a managing director in direct lending. Dobies is currently managing partner of Riverside Credit Solutions.

Other NewStar executives have joined Riverside Credit. Tom Giles and David Kilpatrick, both former Newstar directors, are partners at the firm.

Riverside, a very acquisitive lower-middle-market PE firm, is expanding into credit investing and providing investors with high-yielding products that have a variety of risk-return characteristics, Buyouts has reported. Riverside Acceleration Capital provides growth capital to enterprise-software companies in the form of loans with royalty-like characteristics.

On Thursday, the Cleveland PE firm announced the sale of G&H Orthodontics to Altaris Capital. G&H, which makes orthodontic products including brackets, bands, tubes, wires, springs and elastomerics, was expected to sell for at least 10x EBITDA, Buyouts said.

Riverside could not be reached for comment.

Action Item: To contact Riverside, email Graham Hearns at ghearns@riversidecompany.com

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