Riverside’s court reporting deal returns 5.1x

The Riverside Company has made a return of more than five times its investment in Veritext with the the sale of the court reporting company to Investcorp’s private equity arm.

Courtrooms: Roverside wins out

Veritext has 30 US offices, 800 independent contractors and affiliations with 400 court reporting agencies.

Financial details of the secondary buyout were not disclosed, though Riverside said in a statement it represented a 38 percent gross internal rate of return and 5.1x cash-on-cash return.

Riverside purchased Vertixet in 2005 as a platform investment, investing an undisclosed amount from its $750 million “2003 Capital Appreciation Fund”, and aggressively pursued both add-on and organic growth strategies. The investment was led by Riverside’s Andrew Strauss, portfolio partner; Chip Walker, principal; and Ryan Richards, senior associate.

Riverside’s “Capital Appreciation Funds” invest in North American-based platform companies with EBITDA ranging from $5 million to $15 million.