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Riverwood Eyes US$1.25b Hard Cap on Fund II

1 May 2014

(PEHub) Riverwood Capital has raised about US$1b for its second fund, already hitting its target as the firm now eyes its US$1.25b hard cap, according to three people with knowledge of the situation.

Riverwood Capital Partners II LP had raised at least US$377.9m as of January, according to an SEC filing. A separate filing for Riverwood Capital Partners II (Parallel-B) showed the firm raised US$125.8m, but it was not clear if that amount is part of the US$377.9m total, or on top of that amount.

Michael Marks, Riverwood’s founding partner, did not return an email or phone call asking for comment. Park Hill Group is working as placement agent on the fundraising.

Riverwood launched its second fund in the fourth quarter, according to one of the sources.

The firm’s debut fund, which closed on $780 million in 2011, was generating a 22.1 percent internal rate of return and a 1.4x multiple as of Sept. 30, 2013, according to information from the California Public Employees’ Retirement System.

One of the winners in the Fund I portfolio is wearable camera company GoPro, which is marked around a 7x unrealized return in the portfolio, according to one of the sources, an LP who has heard Riverwood’s pitch. GoPro filed confidential initial public offering documents in February.

Riverwood, which focuses on growth equity tech investments, was formed in 2008 by former Kohlberg Kravis Roberts partner Marks and Christopher Varelas, former co-global head of tech media and telecom investment banking at Citigroup.

The firm has offices in Menlo Park, California, New York City and Sao Paulo, Brazil.