Riverwood Capital, which invests in high-growth technology companies, closed $1.8 billion in new commitments in the largest fundraising round since inception 15 years ago.
The Menlo Park, California-based firm with offices in Miami, New York and Sao Paulo, tapped pension funds, hospital systems, foundations, endowments, fund of funds, insurance companies and family offices among other investors, according to a statement.
Riverwood has invested in 75 companies, mainly in the Americas, including GoPro, ride-hail firm 99, software firm Globant SA, VTEX, Nextdoor and iFLY. It doesn’t divulge fund performance but said annual revenue growth averages about 40% across its portfolio. Assets under management totaled around $6 billion as of the end of the third quarter, though it has closed some deals since.
“We have been exclusively focused on business fundamentals and scalability from day one,” said Francisco Alvarez-Demalde, co-founder and managing partner. “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.”
The firm invests in growth-stage companies that have a shown a path to profitability, more akin to a private equity strategy than venture capital.
This year, Riverwood has led rounds for real-time location service provider Cognosos, IT firm InvGate, cyber security firm SpyCloud, compliance and risk platform Hyperproof and supply chain solutions firm Logcomex. It exited its ForgeRock investment when it was acquired by Thoma Bravo in August.
“Having a concentrated portfolio of proven companies also allows us to take advantage of the upside of a high-growth profile, while aiming to avoid venture risks,” said Jeff Parks, co-founder and managing partner.
