The Riverside Company has raised about $1.29 billion for its Riverside Capital Appreciation Fund VI, according to a source with knowledge of the situation.
Fund VI has a target and hard-cap of $1.5 billion and held a first close on $605 million earlier this year. The fund is expected to hold a final close during the summer, the source said.
Riverside declined to comment on fundraising.
Probitas Partners is acting as placement agent for the fund, according to documents filed with the US Securities and Exchange Commission.
Fund VI will invest using the same strategy as its predecessor fund that collected $1.17 billion in 2009, targeting businesses in North America with earnings before interest, tax, depreciation and amortisation between $5 million and $25 million. Fund V is roughly 80 percent invested, having completed 27 platform investments. Riverside has exited four companies from the fund, generating a combined return multiple of 3x and a net internal rate of return of 33 percent, according to the firm.
Last month, Riverside promoted three individuals to partner, part of a nine-person group of senior professionals promoted at the firm.
Riverside set records for both total acquisitions and exits in 2012, completing 36 and 14, respectively. Riverside also added a Singapore office last year to include Southeast Asia and in its Asia investment strategy that previously operated only out of Hong Kong.