River Cities Capital closes largest fund to date, celebrates 20th anniversary

River Cities Capital Funds (RCCF), a growth equity firm investing in high-potential health care and IT companies, announced today the final closing of its fifth fund. The RCCF Fund V capped at $200 million, surpassing its $150 million goal, with the continued support from many longtime limited partners as well as new participation from several large national and international institutions. The firm, based in Cincinnati and Raleigh, N.C., has raised more than $500 million to date.
 
“With Fund V, we’ll continue to build market-segment leaders that combine disruptive technologies, innovative business practices and disciplined sales and marketing expansion to become frontrunners in their target markets,” says Dan Fleming, managing director of RCCF.
 
The Fund V portfolio includes three companies to date: Trax Technologies, a Saas provider of logistics-spend management solutions; TissueTech, a pioneer in regenerative tissue-based products; and StepLeader, a business-to-business provider of mobile technology platform and data-driven mobile ad networks for local media outlets. With robust deal flow and fundraising completed, new investment activity is expected to accelerate over the coming year.
 
“We see thousands of companies each year and, as always, our mission is to provide our investors with premium returns, while building strong communities that make a positive impact in the market and create job opportunities in the areas of the country that are often underserved by larger VC and PE firms,” Fleming says.
 
After 20 years in business, RCCF has seen the industry change quite a bit.
 
“When we started, the whole investment ecosystem was starting from scratch,” Fleming says. “Now, CincyTech, the Brandery, Queen City Angels, Uptech and Cintrifuse, our region has a tremendous amount of resources focused on new company formation. We currently have two portfolio companies in Cincinnati, and we’ve helped build more than 20 companies in Ohio over the years. We’d of course love the opportunity to put more money to work locally, and we make a concerted effort to track early companies to be ready if they need growth capital.”
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