Hidden River Strategic Capital

Structured Capital for Small Businesses

Hidden River Strategic Capital Announces $245 Million Fund Size

Jun 13, 2023

Inaugural structured capital fund will deploy flexible debt and equity

Hidden River Strategic Capital, a Philadelphia-based investment firm, announced that its inaugural fund, Hidden River Strategic Capital I, LP (“Hidden River”or the “Fund”), has closed on $245 million of committed capital, significantly above its initial target.

Founding Partners Steve Gord, Todd Morrissey and Kevin Condon are lower middle market veterans who were most recently founders and leaders at two well-regarded private equity firms. Hidden River was formed to focus exclusively on flexible junior capital for small business owner-operators, an area underserved by the well-worn investment approaches of growth equity, buyout, and mezzanine/credit funds.

“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.” said Founding Partner, Steve Gord. “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.” Gord continued.

Hidden River will support management teams who will continue to own and operate their business, 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.” said Graham Bachman, Managing Director of Business Development. “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.”

About Hidden River Strategic Capital
Hidden River Strategic Capital invests $5 million to $25 million into U.S.-based positive cash flow businesses typically generating at least $10 million of revenues. Hidden River provides flexible, customized and partnership-oriented structured capital to support these management-owned businesses through their growth needs and strategic initiatives. The Fund is licensed as a Small Business Investment Company (“SBIC”) and invests in a variety of industries with a strong preference for unique, repeatable and durable business models.

Business and Media Inquiries
Graham Bachman
Managing Director, Head of Business Development
gbachman@hiddenrivercap.com
T 610.291.2521