Riata Capital Group (RCG), a private equity firm focused on control investments in the lower middle market, announced it has successfully closed RCG Equity Fund II, LP (RCG II) with commitments of $285 million. This fund exceeded the firm’s hard cap.
RCG II will target six platform companies within the firm’s three industry sectors of business services, consumer, and healthcare services.
And RCG made three platform investments from RCG II and is approximately 50% deployed.
As of March 31st 2024, RCG’s assets under management exceeded $1 billion. And over the course of their careers, the principals of RCG have deployed over $2 billion of capital into more than 45 platforms and 300 add-on acquisitions totaling over $7 billion in transaction value.
Since being founded, RCG raised about $695 million of equity capital across primary funds and co-investment partnerships, invested $544 million, and delivered significant liquidity to investors. ANd through March 31st 2024, the Firm has increased the EBITDA of its platform investments more than 5x since acquisition. The Firm will continue to target equity investments of $25-$150 million in companies with $5-$30 million of EBITDA in RCG II.
RCG was advised by Raymond James Private Capital Advisory and Probitas Partners.
KEY QUOTES:
“We are very pleased with the support of both our existing and new limited partners, allowing us to exceed our target and hard cap in what is a challenging fundraising market. We attribute this to the compelling performance of the investments we’ve made from RCG II, as well as delivering liquidity and value creation across the rest of our portfolio. RCG is well-positioned to complete the deployment of RCG II; as well as execute the larger strategy of building the Firm into a market-leading manager in the lower-end of the middle market, delivering strong and consistent results to our investors.”
– Jeff Fronterhouse, Managing Partner of RCG
