Hidden River Strategic Capital, a Philadelphia-based investment firm, closed its inaugural fund, Hidden River Strategic Capital I, with $245 million of committed capital, which was above its initial target.
Hidden River Strategic Capital was formed by founding partners Steve Gord, Todd Morrissey and Kevin Condon to focus exclusively on junior capital for small business owner-operators.
“Private lower middle-market businesses tend to face a funding void between the often rigid investment approaches of traditional credit funds and the overly dilutive, controlling approaches of growth equity and buyout funds,” Gord said. “We started Hidden River to address this gap in the market with our structured capital offering — flexible, hybrid debt and equity. We are grateful to our limited partners for their support and belief in our approach and are excited to execute on our differentiated strategy.”
Hidden River Strategic Capital will support management teams who will continue to own and operate their businesses while using the fund’s investment for growth, acquisitions, inactive shareholder recapitalizations and other strategic initiatives.
“Throughout their investment careers, our founders have consistently seen small companies struggle to find the right partner when the capital need sits somewhere between the traditional boxes of mezzanine debt and growth equity,” Graham Bachman, managing director of business development at Hidden River Strategic Capital, said. “We look forward to providing funding solutions to owner-operators that don’t saddle them with inflexible debt on the one hand or crowd them out as leaders of their business on the other.”
