Riverside's latest investments show its focus on software

The Riverside Co. has announced several deals related to the software sector this week.

The firm has rolled up Human Element Solutions (dba Element H), a Royal Oak, Michigan-based provider of live events, video, creative and digital content services within the pharmaceutical, biotech and medical device/diagnostic industries, for its Red Nucleus platform.

Red Nucleus is a Yardley, Pennsylvania-based provider of education services for the life sciences industry that has operations across the world.

The deal represents at least the 11th add-on for Red Nucleus since Riverside’s initial investment in the company in December 2019.

“The Element H investment further solidifies Red Nucleus’ market leading launch, commercialization and training service capabilities by significantly bolstering the company’s ability to engage audiences in live and virtual events, multimedia learning and development offerings and highly tailored brand management tactics and strategy for its customers,” said Riverside’s Peter Tsang, co-chief investment officer for the firm’s Capital Appreciation Fund. “It also expands the portfolio into additional customers across the pharmaceutical industry, providing opportunities for cross-selling across the broader Red Nucleus platform.”

Separately, Riverside said it acquired Draper, Utah-based software company Primary Intelligence, which is described as a provider of “win-loss analysis” services for B2B companies, for its Corporate Visions platform.

Corporate Visions is a provider of science-backed training and consulting services for sales and marketing. It was acquired by Riverside from New York private equity firm Sentinel Capital Partners in August 2021.

Primary Intelligence “has analyzed nearly 100,000 B2B purchase decisions for hundreds of companies in 50 different industries over the past 20 years,” according to Riverside.

“There is a strong synergistic overlap between Corporate Visions’ content and Primary Intelligence’s ability to capture deal-based insights that will accelerate growth opportunities for the combined company,” Tsang said.

Finally, Riverside said it has invested in Gastromatic, a German SaaS provider of workforce management software for small and midsize businesses operating in shift-based industries.

The platform automates critical business processes across some 12,000 sites representing more than 2,600 clients.

That business will continue being led by its five co-founders.

Financial terms of all these deals were not disclosed.

Riverside is a global private equity firm co-headquartered in Cleveland that invests in growing businesses valued at up to $400 million in the smaller end of the middle market.