MENLO PARK, CA and MIAMI, November 20, 2023—(BUSINESS WIRE)–Riverwood Capital, one of the leading investment firms dedicated solely to technology growth and scalability, today announced that it has closed approximately $1.8 billion in new capital commitments to invest in high-growth technology businesses in world Wide. The closing coincides with Riverwood’s 15th anniversary.
Riverwood has reached $7.3 billion in all investments since inception by executing a consistent investment strategy focused on actively partnering with established technology companies as they seek capital and expertise to expand their customers, products and global footprints.
Riverwood has led investments in over 75 companies, each capitalizing on global technology trends such as digitization, cloud, SaaS, AI and automation, big data and analytics – and selected for their differentiated business, human capital and platform across several key sub-sectors including cybersecurity, financial technology, enterprise IT, sales and marketing technology, HR technology, edtech and more. The firm’s specialized investment strategy and active partnership model have generated consistent performance across economic cycles, with Riverwood’s portfolio companies growing revenues by an average of approximately 40% annually during the firm’s holding period.
“Since 2008, we have been focused on a very attractive and expanding market opportunity for mid-sized, high-growth technology companies in which we can invest between $25 million and $100 million and provide world-class operational resources and expertise to we scale these businesses without the leverage limitations and risks associated with traditional buyout strategies,” said Jeff Parks, Co-Founder and Managing Partner, Riverwood Capital. “Having a concentrated portfolio of proven companies also allows us to reap the benefits of a high-growth profile while seeking to avoid the risks of risks such as investing in unproven business models and speculative product market fit.”
“We have focused exclusively on business fundamentals and scalability from day one – through the recent market peak in 2021 or as we look to deploy fresh capital in this next chapter, Riverwood has led with a different approach and value proposition than momentum-driven investors,” said Francisco Alvarez-Demalde, Co-Founder and Managing Partner, Riverwood Capital. “Our comprehensive expertise and decades of proprietary knowledge and experience in scaling the technological, financial and operational needs of growth-stage companies have established Riverwood as a partner of choice for our investors and portfolio companies. We are grateful for the support we have received from our investors since the beginning as we close our largest fundraising to date.”
Riverwood’s fourth generation of funds exceeded their goals with a strong rate of return, accounting for investment from leading institutions and prominent new investors, including some of the largest and best-known pension and hospital systems, foundations, university endowments, a global fund of funds , insurance companies, family offices and other world-class investors.
“We would like to express our gratitude to our investors, who recognized and continue to see value in Riverwood’s disciplined approach, and to the firm’s entire team and portfolio, who have contributed to the execution of our vision of creating long-lasting, category-defining companies.” added Parks.
“The acceleration of technology transformation worldwide is undeniable, and we see a growing array of opportunities to partner with incredible teams to build fundamentally strong companies as we enter a balanced new era of technology growth,” Alvarez-Demalde concluded.
FOR RIVERWOOD CAPITAL
Riverwood Capital invests in high-growth companies in technology and technology-based industries. Riverwood offers a unique combination of operational, strategic, technology and financial insights for portfolio companies that typically need growth capital and expertise to expand globally. The firm seeks to invest in established businesses with a proven technology and business model, as well as the right fit in terms of culture and values. Riverwood was founded in 2008 and has had the opportunity to invest in and support over 75 companies since inception, which have grown their revenue by an average of approximately 40% per year during that period. The firm has offices in Menlo Park, California; Miami, Florida; New York, New York and Sao Paulo, Brazil. For more information, visit www.riverwoodcapital.com
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Caitlin Mitchell, Riverwood Capital
James Maloney, Tiger Hill Partners