Riverside Strategic Capital

Non-control Capital for Owners and Entrepreneurs

Riverside brings more than financial resources — we support owners and management teams with strategic resources to fuel growth. Riverside Strategic Capital portfolio companies have the ability to access Riverside’s dedicated deal sourcing team, deep industry experience, vast executive network, operating resources, pooled purchasing program and many other resources.

Riverside Strategic Capital provides:

Structural flexibility that meets the specific needs of owners/entrepreneurs and enables them to maintain control
Solutions for business owners who need capital for acquisitions, liquidity events, organic growth initiatives and recapitalizations
Access to leverage the scope and scale of Riverside’s global resources

Case Study - G&A Partners

G&A Partners is a professional employer organization with 85,000 worksite employees. The company offers a full suite of solutions, including HR administration and development, payroll administration, employee benefit management, risk management and recruitment process outsourcing.

Case Studies are not intended to be illustrative for investment purposes and should not be relied upon for investment decision making. This should not be considered an offer or solicitation of securities or investment services. Information is for informational purposes only and intended for General Partners or Management teams considering partnering with The Riverside Company.

Flexible Capital for the Life of an Investment

Riverside has extensive experience partnering with other private equity firms and family offices, independent sponsors and business owners. We have the flexibility to invest in a range of structures tailored to meet the needs of owners at any point during an investment’s lifecycle:

Initial Transaction – Extend Capital Structure

Preferred equity to obtain leverage beyond senior, unitranche or second lien debt
Provide front-end support
(underwriting, structuring, diligence, debt partners, etc.)

Capital to Facilitate Add-on Acquisitions

Liquidity or Recapitalizations

Dividend recap / maintain upside
Redeem minority shareholders
Redeem outstanding debt
Obtain independent, third-party valuation to substantiate enterprise value

Flexible Capital Solutions

Subordinated debt
Preferred equity – redeemable or convertible
Common equity

The Riverside Difference

Riverside Strategic Capital portfolio companies can access:

Executive Networking: Tap the collective wisdom of the management teams of Riverside's 100+ companies.
Pooled Purchasing: Negotiated discounts on commodities such as travel, long distance telephone rates, IT hardware, shipping and insurance.
Riverside Toolkit: Vetted consulting resources and operating partners to assist in a variety of areas, including sales strategy and methodology, pricing, lean manufacturing, supply chain, acquisition integration, working capital reduction and more.
Deal Sourcing: Dedicated team to help identify and solicit add-on acquisition candidates. Deal team will assist with negotiation, structuring and financing acquisitions.
Riverside University: Ongoing education program bringing together a diverse community of management teams and board members to cultivate growth.
Riverside Information Security Office (RISO): Affordable and effective custom cybersecurity programs that meet legal and regulatory requirements.
Operating Partner/Senior Advisor Pool: Riverside has more than 50 deeply experienced senior leaders who can help capture opportunity and fix issues quickly and effectively.

Case Study - Bentley Labs

Bentley Labs is a contract formulator and manufacturer of beauty care products with a focus on skin care, hair care and body care. Key services include: development, testing, manufacturing and filling products as well as handling all shipping needs.

Through add-on acquisitions Riverside helped grow the organization to be able to provide a broader range of technical services and products to their customers.

Deal Criteria & Typical Terms

Company Criteria

EBITDA: $4 million or greater
Headquartered in United States

Business Services
Franchisors & Multi-Unit Franchisees
Software & IT
Specialty Manufacturing & Distribution
Education & Training
Healthcare
Consumer Brands

Debt
Preferred Equity
Common Equity

$10 million - $30+ million

Board or Observer Seat

Cash Pay, PIK or Combination of Both

Acquisitions
Shareholder Recapitalizations
Organic Growth Initiatives
Liquidity Events

Case Study - North American Dental Group

North American Dental Group (NADG) is a dental practice management company that operates dental clinics in nine states. The company offers a full range of comprehensive dental services including general dentistry, orthodontics and other specialty services.

Key to NADG’s growth and success, Riverside helped the Company improve and streamline its add-on acquisition and integration process. The addition of a formalized and consistent approach with full team visibility helped NADG to expand into new states like Florida and Georgia while deepening its presence in the Midwest and Northeast. During RSCF’s investment period, NADG grew from 70 practices in four states to over 200 practices across 11 states.