Riverside Fund Blows Past $250 Million Target

Here’s a fun debunk: Yesterday Boston Business Journal reported that Riverside Partners had collected $85.6 million in commitments toward its fourth fund, citing an SEC filing for Riverside Fund IV Offshore LP. Technically, Boston Business Journal wasn’t inaccurate, but that’s kinda like calling Warren Buffett a millionaire.

The Boston-based buyout firm indeed raised $85.6 million for its offshore fund, but everyone knows an offshore fund has an “onshore” counterpart. And that fund, in a separate SEC filing, gathered $292.36 million in commitments from 34 investors.

So Riverside Partners has $377 million in total commitments. The filing lists a target of $314.365 million in commitments, leaving $22 million yet to be raised. Regardless of whether the offshore fund counts toward that total, Riverside Partners has far surpassed its initial target of $250 million, which peHUB reported in July.

The firm pre-marketed its fourth fund for almost a year before officially entering the market this summer. As of July, the firm was nearing a first close on the fund. Atlantic Pacific Capital is serving as the firm’s placement agent, a change from its prior fund, which used Probitas Partners.

At $250 million, Riverside Partners was seeking only a slight increase from its $225 million third fund, a 2006 vintage. Fund three had investments from Abbott Capital, Hartford Investment Management, the Massachusetts Institute of Technology, TIFF and MN Services. Fund three placed Riverside Partners squarely on the middle market map, exceeding its initial target of $175 million. That sum was already a large step up from its previous fund of $68 million and its debut fund of $46 million. The firm specializes in investments in the health care and technology sectors in companies with annual revenue of between $10 million and $100 million. The firm did not respond to requests for comment.

With almost $400 million under its belt, Riverside’s fundraise is one of the year’s most successful, highlighting once again the difference between fundraising “haves” and “have-nots.” Just last week Marlin Equity closed its fund with $650 million, after raising its target by $200 and turning away an additional $400 million of interest. Meanwhile Atlas Holdings raised the target from $300 million to $350 million on its debut fund.

Previously: Riverside Partners Approaching First Close on Fund Four

Pre-Marketed Funds “Officially” Enter Market