Riordan, Lewis & Haden Equity Partners has closed its oversubscribed fourth fund at $510.6 million. RLH Investors IV’s limited partners include domestic and international public and private pension funds, foundations, funds-of-funds and high-net worth individuals. RLH invests in in high-growth businesses in the healthcare, government services and business services sectors that have an annual revenue between $30 million and $200 million.
LOS ANGELES, Oct. 19, 2017 /PRNewswire/ — RLH Equity Partners is pleased to announce the final closing of RLH Investors IV, LP (“Fund 4”) with total commitments of $510.6 million. Fund 4 was oversubscribed, requiring an increase in the fund’s original hard cap to accommodate strong investor interest. The new fund’s size represents a more than 30 percent increase from the committed capital of RLH’s prior fund.
The firm’s focus on creating value through rapid organic growth and conservative capital structures attracted strong support from both existing and new limited partners. The merits of RLH’s approach were demonstrated to prospective investors via the firm’s compelling record of successful portfolio company exits throughout the firm’s history. Notably, RLH’s most recent seven exits yielded an average gross multiple on investment (MOI) of 4.6x, with MOI’s ranging from 2.5x to 8.7x.
“We are grateful for our investors’ confidence in our seasoned team of investment professionals and the differentiated value-creation strategy that we have been successfully pursuing for more than 35 years,” said J. Christopher Lewis, Managing Partner of RLH. The investor base for Fund 4 primarily consists of two dozen highly-regarded domestic and international public and private pension funds, foundations, funds-of-funds, and high net worth individuals. Lewis added, “We also want to thank the outstanding entrepreneurs with whom we partner. Their vision, energy, and expertise are essential elements of the investment success we have enjoyed.”
RLH Managing Director Michel Glouchevitch noted, “We are pleased to have a fresh pool of capital to back high quality management teams in building distinctive, market-leading, high-growth enterprises. We have already completed our first investment from Fund 4 and have a sizable pipeline of promising opportunities with which we are now actively engaged.”
Riordan, Lewis & Haden is a leading private equity firm which invests in high growth, profitable enterprises with $30 – $200 million of annual revenue. Focused on companies in the business services, healthcare, and government services sectors, RLH has achieved a 35-year track record of success by partnering with passionate entrepreneurs to build significant companies. RLH typically invests via a recapitalization transaction that provides partial liquidity for the entrepreneur, and then assists the portfolio company management team in navigating the opportunities and challenges of rapid growth. The firm currently manages approximately $1 billion of assets and is actively seeking new portfolio companies.