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Riverside closes $225m fund

The Boston-based firm has closed its third healthcare and technology focused fund after exceeding an initial target of $175 million.

Riverside Partners has closed is third fund, Riverside Fund III, at $225 million (€175 million) of committed capital. The fund will focus on middle market healthcare and technology companies.

Riverside has already made three investments from the fund in three founder-owned healthcare and technology businesses. Investment began in the fourth quarter of 2005 with a commitment of $40 million to partnerships with National Display Systems, a California-based provider of flat-panel healthcare display systems, SIXNET, a New York-based manufacturer of network connectivity devices and Quantum Medical Imaging, a New York-based developer of x-ray systems.

Riverside, which was founded in 1989, focuses on middle-market companies that are founder- and family-owned. The objectives for these companies range from providing liquidity for estate planning, helping with management succession and maximizing value through retained equity. The operating partners at Riverside are former CEOs of lower middle market companies.

Investors in Riverside’s third fund, which exceeded its initial target of $175 million, include the Massachusetts Institute of Technology, Abbott Capital Management, MN Services and Hartford Investment Management.

San Francisco-based Probitas Funds Group served as Riverside’s placement agent.