Editor’s note: Local Tech Wire features a profile of a venture or investment profile firm each business day. Among the oldest middle-market buyout firms in Atlanta, River Capital was founded in 1983 by Larry Mock, who went on to become chief executive of Mellon Ventures, a big backer of technology firms. Yet River Capital has not made any technology bets in recent years and, with $54 million under management, has been bypassed in terms of size by many younger venture firms that focus on tech investing.
River Capital typically invests between $3 million and $7 million in a portfolio company.
It prefers firms in the light manufacturing, distribution and service industries with at least $10 million in annual revenue, stable earnings and a secure market position that present opportunities for internal growth, geographic expansion or industry consolidation.
The firm generally assumes majority ownership of its portfolio companies. However, River Capital does provide management, which often participates in the buyout or re-capitalization, with a free rein to run the business.
Recent investments have included aircraft service providers Piedmont Aviation and TronAir, furniture and accessories manufacturers Decor Gravure and Winston Furniture and newspaper publisher Hometown Communications.
Here’s the skinny:
Featured Firm: River Capital, Inc.
Mailing address: 1360 Peachtree St., Suite 1430 Atlanta, GA 30309
Phone number: (404)873-2166
Web site: www.river-capital.com
Jerry D. Wethington
J. Phillip Falls
Jon Van Tuin
Focus of firm: Light manufacturing, distribution and select service industries
Money under management: $54 million
Hometown Communications, Inc.
Piedmont Aviation Services, Inc.
Winston Furniture Company, Inc.
American Threshold Industries
Consumer Product Enterprises, Inc.
DÃ©cor Gravure Corporation, Inc.
In what size range: $3 million to $7 million
Sweet Spot (types of deals, stage of the company): Companies seeking second-stage expansion. Late-stage expansion, or buyout or acquisition financing.
Most important attributes for companies seeking funding: Management team with a proven track record and at least $10 million in sales. We do not invest in companies involved in real estate, oil and gas or financial services.
What differentiates you: Required to turn over a majority interest in the company to River Capital’s portfolio, but company’s management receives and maintains daily operating control and a significant percentage of ownership.
Monday’s profile: Southeast Technology
Previous profiles can be found under Venture Watch. Set date parameters for Feb.11 through today, hit enter, and see the VC related stories published since that date.
Feb. 11: Academy Venture Funds
Feb. 12: Atlantic Group
Feb. 13: Aurora Fund
Feb. 14: Capital Investment Partners
Feb. 15: Carolina Financial Group
Feb. 18: Carousel Capital
Feb. 19: Catalysta Partners
Feb. 20: Charlotte Angel
Feb. 21: Draper Atlantic
Feb. 22: Eno River
Feb. 25: Halifax Group
Feb. 26: Intersouth Partners
Feb. 27: Kitty Hawk Capital
Feb. 28: NC Enterprise Corp.
March 1: NC Technological Development Authority
March 4: Oberlin Capital
March 5: A.M. Pappas
March 6: Piedmont
March 7: RBC Centura
March 8: Redleaf Group
March 11: Remington Capital
March 12: River Cities
March 13: Research Triangle Ventures
March 14: Southeast Interactive
March 15: Tri-State Investment Group
March 18: Trelys
March 19: truePilot
March 20: Wakefield Group
March 21: Frontier Capital
March 22: Southern Capitol Ventures
March 25: Alliance
March 26: Armada
March 27: Cordova Ventures
March 28: Craven, Green & Wahlen
March 29: Intelligent Systems
April 1: Five Paces Ventures
April 2: Kinetic
April 3: Gray Ventures
April 4: Live Oak
April 5: Mellon Ventures
April 8: Linx
April 9: Monarch
April 10: Noro-Moseley
April 11: Richards Capital