Riverside holds close on €175m for Riverside Europe V

Alice Tchernookova
22 February 2017

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Belgium-based GP Riverside Europe has gathered €175m of commitments for its fifth EU-focused generalist buyout fund, Riverside Europe Fund V, after more than a year on the road.

News of the close came as Riverside filed documents with the Securities and Exchange Commission (SEC) on 2 February 2017, as reported by French website Capital Finance.

According to unquote" data, the fund was launched in late 2015 with a target of €450m and a hard-cap of €600m. A reported €125m had been raised for the fund by December 2015.

The fund's previous generation, Riverside Europe Fund IV, closed on €420m in October 2010, short of its €550m target due to difficult fundraising conditions, unquote'' reported at the time.

Domiciled in Luxembourg, the Riverside Europe funds have a 10-year lifespan with two possible one-year extensions. For Fund IV, around 75% of the commitments were drawn within a five-year investment period, while the remaining 25% were to be set aside for eventual bolt-on opportunities and general portfolio management.

For the previous fund, management fees, hurdle and carry were set at 2.5%, 8% and 20% respectively. Advisory and closing fees were to be shared on a 50/50 basis.

Evercore is acting as placement agent for Riverside Europe V.

Investors
According to the SEC filing, 17 investors have so far contributed to the fund, committing around 40% of the fund's overall target.

Riverside funds traditionally attract attention from Europe, the US and Australia.

Investments
Riverside Europe V is a growth capital fund focusing on European lower-mid-market buyouts. The fund will look to take both minority and majority stakes in groups with an EBITDA in the €5-15m range, Capital Finance reported.

The fund's predecessor planned to make 15-20 acquisitions over its investment period, providing €10-25m of equity per transaction.

Sector-wise, the fund will place a particular focus on financial services, consumer goods, education, healthcare, technology and industry.

The fund already has two portfolio companies: European Panel Company, acquired in September 2016, and German group GEV, in which the GP invested in October last year.

People
Riverside Company – Stewart Kohl, Bela Szigethy (co-CEOs); Bela Schwartz (CFO).