Riverside sets sights on $650m for micro-cap Fund IV

The firm has crossed the $500m mark for its latest micro-cap vehicle.

The Riverside Company has passed the $500 million mark on its fourth micro-cap fund, according to investor sources.

The fund is believed to be on track to hit its hard-cap of $650 million in the third quarter of this year.

Riverside Micro-Cap Fund IV has held a close on $314.9 million while Riverside Micro-Cap Fund IV-A closed on $227.4 million, according to two regulatory filings with the US Securities and Exchange Commission last week.

Riverside declined to comment on the fundraising.

According to PEI Research & Analytics, Riverside Micro-Cap Fund IV was launched in 2015, and was initially targeting $500 million. Its predecessor, the 2014-vintage Riverside Micro-Cap Fund III, held a final close on $350 million in 2014, having initially targeted $225 million.

Riverside Micro-cap Fund IV is lead-managed by Loren Schlachet, a managing partner based in Riverside's Los Angeles office.

It is understood to have already made at least five investments.

In terms of its micro-cap strategy, it typically focuses on North American businesses with an Ebitda of between $1 million and $7 million.

This story first appeared on http://www.privatehealthcareinvestor.com .