Riverside raises $115m for Asia fund

The global fund made a second close on its latest Asia-Pacific vehicle weeks before making its first-ever New Zealand investment.

The Riverside Company made a second close on its second Asia-Pacific vehicle in mid-June 2013, having raised $115 million from investors, according to a filing with the US Securities and Exchange Commission. 

The firm is targeting $150 million for the fund, which expects to make a final close later this year or early next year, a source with direct knowledge of the matter told Private Equity International. The fund made a first close on $70 million in September 2012.

A Riverside spokesman said the firm would not comment on fundraising. 

This week Riverside completed its first ever investment in New Zealand, which was made from the Riverside Asia Fund II. 

The firm took a controlling stake in Simcro, which produces drug administrating products for animals bred for meat. 

Riverside did not disclose the deal value, but a source close to the deal said it was within Riverside's investment range of $75 million – $200 million. 

The deal represents the firm's first in New Zealand since it started assessing opportunities in Australasia in 2010. Brad Lynch, principal at Riverside who worked on the deal, said businesses in New Zealand are well-suited to Riverside as many are heavily reliant on exports due to the small size of the market there. 

“A lot of New Zealand businesses in the mid-market have earlier had to think about exporting just given the size of the domestic market,” Lynch explained. “Simcro is no different, 90 percent of their sales are exports – so Simcro is a global player in its niche. There are a number of New Zealand businesses that have had to think about a global market very early on in their life cycle.”

The Riverside Company plans to help
Simcro expand into developed markets.

Riverside plans to help Simcro expand into developed markets, including Australia, Japan and Korea.

While the firm will focus on developing Asia for its second private equity vehicle, Riverside is strengthening its capabilities in emerging Asia to source portfolio company add-on opportunities in China and Southeast Asia, co-chief executive of the firm Béla Szigethy revealed to PEI earlier. 

The firm is in the process of setting up its Singapore office as a response to calls for exposure to Southeast Asia from existing and potential LPs, Szigethy said.

The Singapore office employs two full-time professionals. Riverside also has Asia offices in Tokyo, Seoul, Hong Kong and Melbourne.

Additionally, the firm is raising the Riverside Capital Appreciation Fund VI, for which it has attracted $1.29 billion to access opportunities in the US mid-market. 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,  PEI reported earlier.