Northill Capital to acquire majority stake in Riverbridge Partners
London-based Northill Capital has invested in Riverbridge Partners, a Minneapolis-based specialist investment manager of small, mid and large cap US equity growth portfolios for institutional and high net worth investors.
The deal gives Northill a 58% interest in the firm’s equity, buying out 100% of the equity of retired or former partners of the firm, and just under 50% of the equity of the existing management team led by Riverbridge founder and chairman Mark Thompson.
Northill is a private equity firm founded in late 2010 by Jon Little (pictured), former vice-chairman of $400bn BNY Mellon Asset Management. Northill was launched with substantial backing from the Bertarelli family, and assistance from founding partners Jeremy Bassil and Rick Potter.
The business intends to provide equity and seed capital to a small number of high quality start-ups or early stage managers and to provide equity capital to replace existing shareholders in larger more established asset managers.
Northill said its investment in Riverbridge is “consistent with its long-term strategy to build a diversified portfolio of well-managed, high quality investment businesses”. Riverbridge was founded in 1987 and currently manages almost $4bn in assets.
Riverbridge, with a senior portfolio management team has worked together for more than 20 years, is a growth style manager with a long-term, low portfolio turnover approach which seeks to invest in high quality, well managed companies that demonstrate the ability to sustain strong secular earnings growth, regardless of overall economic conditions.
Riverbridge says that since inception all its investment strategies have outperformed their respective benchmarks. Riverbridge will continue to be based in Minneapolis and operated by its existing management team. Members of the Northill management team will join the Riverbridge board.
All existing Riverbridge Board members will remain in place, while the number of management owning equity will grow over time to reflect the further development of the firm’s strong existing talent pool. Existing Riverbridge equity owners will hold all their remaining equity for a minimum of five years. In addition, each will reinvest half their net proceeds in Riverbridge’s investment strategies.