Riverside’s court reporting deal returns 5.1x

The sale of New Jersey-headquartered Veritext to Investcorp generated a 38% gross IRR for mid-market firm Riverside.

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

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.