Riata Capital Group Closes RCG Equity Fund II at $285 Million, Exceeding Target
22 May 2024 - 11:30AM
Business Wire
Riata Capital Group (“RCG” or the “Firm”), a private equity firm
focused on control investments in the lower middle market, today
announced it has successfully closed RCG Equity Fund II, LP (“RCG
II”) with commitments of $285 million, exceeding 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. RCG has made three platform investments from
RCG II and is approximately 50% deployed. As of March 31st 2024,
RCG’s assets under management exceeded $1 billion1.
Jeff Fronterhouse, Managing Partner of RCG, said, “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.”
Since its founding, RCG has raised approximately $695 million of
equity capital across primary funds and co-investment partnerships,
invested $544 million, and delivered significant liquidity to
investors. 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.
About Riata Capital Group
RCG is a leading Dallas-based private equity investment firm
that partners with seasoned management teams to invest in growing,
profitable, privately held companies with a focus on three industry
sectors - business services, consumer, and healthcare services. The
Firm takes a selective approach to investing in high-potential
businesses whose owners and management teams want an investment
partner with the capital, experience, and record of successful
collaboration required to achieve their liquidity and
value-creation objectives. 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. For more information, visit
www.riatacapital.com.
________________________________ 1 The values of unrealized
investments are unaudited as of March 31, 2024, and are inherently
uncertain and subject to change. There is no guarantee that such
value will be ultimately realized by an investment or that such
value reflects the actual value of the investment. Actual realized
proceeds on unrealized investments will depend on, among other
factors, future operating costs, the value of the assets and market
conditions at the time of disposition, any related transaction
costs, and the timing and manner of sale, all of which may differ
from the assumptions on which the valuations reflected in the
historical performance data contained herein are based.
Accordingly, the actual realized proceeds on these unrealized
investments may differ materially from the returns indicated herein
and there can be no assurance that these values will ultimately be
realized upon disposition of investments. Different methods of
valuing investments and calculating returns may also provide
materially different results.
These materials are strictly confidential and have been prepared
solely for the information of the intended recipient. They are not
to be reproduced in whole or in part or used for any other purpose
except as authorized by Riata Capital Group (“RCG”). Reproduction
and distribution of these material may constitute a violation of
federal or state securities laws. By accepting these materials, you
and your representative agree to keep all of the information
contained herein (together with any copies or extracts thereof)
confidential to be bound by these confidentiality provisions.
Unless otherwise noted, the information contained herein has
been compiled and estimated as of the date of this letter, and
there is no obligation to update the information. The delivery of
these materials will under no circumstances create any implication
that the information herein has been updated or corrected as of any
time after the date of publication or the date as of which such
information is stated.
Any forecasts and estimates (including, without limitation, any
projected rates of return) contained herein are necessarily
speculative in nature, involve elements of subjective judgment and
analysis, and are based upon certain assumptions and the best
judgment of RCG. It can be expected that some or all of such
assumptions will not materialize or will vary significantly from
actual results. Accordingly, these projections are only an
estimate. Actual results will differ and may vary substantially
from the results shown herein or projected. Riata’s projected
performance information is not a prediction or projection of actual
results.
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Jeremy Milner BackBay Communications
jeremy.milner@backbaycommunications.com (401) 862-9422