Riverside Partners is eyeing a founder-owned healthcare technology company for its new private equity fund. The Boston-based firm just closed its Riverside Fund III with $225 million of committed capital on May 12. David Belluck, general partner of the, declined to comment on the prospective new company or how much Riverside would invest but says the deal is lined up for the third quarter.
Riverside has committed $40 million so far to three investments to Riverside III.
Unlike the $68 million Riverside Fund II, the firm hired a placement agent, in the form of Mac Hofeditz at San Francisco-based Probitas Partners. As a result it was able to attract 31 new investors, including Massachusetts Institute of Technology, TIFF and Abbot Capital Management. Riverside II had seven investors and Riverside I, which is fully realized, had five. “Working with a placement agent helped us in an efficient way to meet a number of new investors,” Belluck said. “It’s an established business with a solid investment team and a sold strategy undiscovered by institutional investors,” Hofeditz said.
Riverside is particularly interested in healthcare technologies such as wireless suppliers, industrial communication and semiconductor equipment manufacturers.