Riverside makes sweet start to REF IV

The mid-market firm has acquired a German supplier to the confectionary industry, in the first investment from Riverside Europe Fund IV.

The Riverside Company has kicked off investment from its fourth Europe fund with the acquisition of a majority stake in German company Kaul. The business manufactures a range of products, primarily glazing and polishing agents for sugar confectionary, such as jelly beans, gummy bears, gums and sugar-coated chocolates.

Jelly beans: Riverside now has them covered

Financial details of the transaction were not disclosed.

The lower mid-market firm, which operates from bases in the US, Europe and Asia, is currently raising Riverside Europe Fund IV, understood to be targeting around €550 million. A spokesman for the company declined to comment on the fundraising process.

Kaul was established in 1975 and as well as producing coating agents for the confectionary industry, it also manufactures anti-sticking and release agents for the agricultural and pharmaceutical industries.

The Riverside Company in June closed its fifth North America-focused buyout fund with $1.17 billion in commitments, the largest fund in its 21-year history. The firm is also currently raising $100 million for its first Asia-focused fund, for which it held a first close on $25 million in September 2008.