Riverside Sings Praises of Small Business on Capitol Hill March 26, 2009
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Firm Explains Private Equity’s Vital Economic Role to Congress
Today, The Riverside Company’s Chief Operating Officer Pam Hendrickson shared insights on private equity’s positive and crucial role in the United States’ economy. Ms. Hendrickson presented to the U.S. House of Representatives Committee on Small Business, Subcommittee on Investigations and Oversight.
The Riverside Company has long known that small business is one of the key drivers of the economy. After all, the firm and its partners have enjoyed decades of success by buying and building more than 200 smaller companies. Riverside’s consistent focus on the smaller end of the middle market and its proven track record of growth made the firm a good choice for the honor of speaking.
Ms. Hendrickson’s submitted testimony focused on the private equity practices that create jobs and growth. Riverside and many other private equity firms find success by striving to make companies bigger and better. This process typically benefits the private equity firm; its pension fund, institutional and individual investors; and – crucially – the firms’ portfolio companies, their founders and their employees. Ms. Hendrickson touched on some specific and time-tested Riverside strategies and tactics, including providing:
- Capital for expanding the business without burdening companies with unrealistic debt
- Operational expertise
- Enhanced financial reporting, bringing more transparency and accuracy to companies
- Executive leadership and other key professional experience
- Tools, advice and the purchasing power of a shared portfolio
Her complete testimony is available on the Riverside web site at www.riversidecompany.com/testimony.pdf.
Stewart Kohl, Riverside Co-CEO
“It’s pretty rare these days that a company is excited to speak before Congress. We’re thrilled to be such an exception and enormously proud of the work we do. We’re honored to present what we feel is compelling testimony about the key role private equity plays in providing a critical source of financial and intellectual capital boosting our nation’s productivity, employing millions of Americans, and ensuring a bright future for business.”
Béla Szigethy, Riverside Co-CEO
“Pam’s remarks concisely explain why private equity is so important for the growth and success of smaller enterprises. We hope her comments are useful in shedding light on our complex and often misunderstood business. We’re rightfully proud of Riverside’s 21-year history and the private equity industry’s place in the economy. We look forward to continuing to contribute to the entrepreneurial spirit of America.”
The Riverside Company is the largest global private equity firm focused on the smaller end of the middle market (“SEMM”) and is one of the industry’s most experienced leveraged buyout investors. Riverside invests in premier SEMM companies valued up to $150 million and partners with strong management teams to build companies through acquisitions and value-added growth. Since its founding in 1988, the firm has invested in 211 transactions with $4.7 billion in enterprise value, and has a current portfolio in North America, Europe and Asia consisting of 69 companies. Riverside offers certainty to close and can complete acquisitions in as little as 45 days, thanks to its more than $2.7 billion of capital under management, over 180 professionals in 18 offices (Atlanta, Brussels, Budapest, Chicago, Cleveland, Dallas, Eindhoven, Hong Kong, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw), and long-standing relationships with partner lenders. As of the end of September 2008, Riverside’s portfolio had combined annual sales of $3.2 billion, EBITDA of $524 million and more than 14,000 employees. Five of the firm’s eight mature vintages were currently top quartile. Riverside’s investors include the world’s leading pension funds, endowments, funds-of-funds, insurance companies and banks.