Hidden River Closes Debut Junior Capital Fund at $245M

Investment firm Hidden River Strategic Capital closed its debut fund, Hidden River Strategic Capital I, with $245 million of committed capital, significantly above its initial target.

Formed by founding partners Steve Gord, Todd Morrissey and Kevin Condon, Philadelphia-based Hidden River focuses exclusively on junior capital for small business owners.

“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,” said Gord.

Hidden River invests $5 million to $25 million in businesses typically generating at least $10 million in revenues. The fund, licensed as a Small Business Investment Company (SBIC), will support management teams who will continue to own and operate their business.