Firm: River Associates
Fund: River VI LP
Target: $125-150 million
Planning for the fund is still in the early stages, but our source said he expects the Cahttanooga, Tenn.-based firm to set a target in the range of $125 million to $150 million. Executives expect to be able to promote a gross internal rate of return of almost 35 percent over an 18-year period. It will consider hiring a placement agent.
The shop is currently investing from its fifth fund, the $110 million
River Associates, which typically funds its deals with 40 percent to 45 percent equity, typically acquires North American companies generating adjusted operating income ranging from $2 million to $10 million in manufacturing, distribution, industrial services and retail businesses, among other industries. At present the firm has a specialty apparel business and an outsourcing services company under of letter of intent.
The firm also is seeking add-on deals for Coining Inc., a Saddle Brook, N.J.-based company that makes metal products used in the packaging and assembling of microelectronics; Lucent Polymers, an Evansville, Ind.-based company that produces resin compounds for the industrial, consumer and automotive markets; Roscoe Medical, a Strongsville, Ohio-based distributor of respiratory supplies and replacement parts to the home health care market; Spectrum Corp., a Selmer Tenn.-based company that prepares and markets specialty oils used in power lawn and garden equipment; and Wheaton Industries, a Millville, N.J.-based company that makes scientific laboratory equipment.
George Pettway, an advisory partner, founded River Associates in 1990.