River Associates Investments, a Chattanooga, TN-based lower middle market private equity firm, closed its seventh fund, with total commitments of $285m.
Raised in approximately eight months, River VII, LP, was oversubscribed and exceeded the original $250m target. Commitments came from university endowments, public company pension plans, insurance companies and family offices, a number of whom were investors in previous River Associates’ funds.
Consistent with prior funds, the partners of River Associates have made significant personal capital commitments to River VII.
Founded in 1989 and led by Jim Baker, Mike Brookshire, Mark Jones, Patten Pettway, and Craig Baker, River VII will continue RAI’s strategy of control buyouts, in partnership with management teams, of lower middle market companies taking an opportunistic approach and invests in a wide array of sectors including manufacturing, distribution, industrial services and business services.
The firm generally targets investments in platform companies with $3-12 million of operating cash flow (EBITDA) located in the U.S. or Canada. It has invested in a total of 80 platform and add-on companies located in 23 different states and two Canadian provinces.