RLH Equity Raises $260M, Eyes February Close

Firm: Riordan Lewis & Haden Equity Partners

Fund: RLH Investors III LP

Target: $250 million, hard cap of $350 million

Placement Agent: Probitas Partners

The firm, which has surpassed its $250 million target for the fund, could close it at as much as $335 million, the source said. Investors so far include advisory firm Altius Associates and secondary fund investor Montauk TriGuard, as Buyouts previously reported.

RLH Equity, as the firm is popularly known, typically invests $10 million to $50 million in companies that generate annual revenues of $20 million to $200 million. The firm targets companies in the business services, health care, and government services sectors, among others.

At deadline, RLH Equity was close to selling ABB/Con-Cise Optical Group LLC, a distributor of contact lenses to eye care professionals, to New Mountain Capital. In August, its fundraising effort got a boost when its sale of maxIT Healthcare LLC, a health care-focused information technology and consulting company, generated 8.7x its invested capital, according to the source.

The firm closed its previous fund with $265 million in commitments in 2007.

Co-founder J. Christopher Lewis runs the firm with fellow Managing Directors Michel Glouchevitch, Murray Rudin and Robert Zielinski. Co-founder Richard Riordan, the former mayor of Los Angeles, is no longer involved in daily activities at the firm but remains a significant investor.