Redwood Capital Investments is a private equity firm established in 1995 and headquartered in Baltimore, Maryland. With over 25 years of investment experience, it has grown to manage around $8 billion of assets. The firm focuses on making control-oriented, operationally intensive private equity investments in middle market companies. It mainly invests in consumer products and services, niche manufacturing, business services and healthcare sectors. Redwood’s portfolio is quite diversified across industries and it has achieved steady growth by partnering with strong management teams to accelerate value creation. Some of the key investment funds and holdings of Redwood Capital include:
Redwood Capital Partners Funds for private equity investments
Redwood Capital manages several private equity funds to make investments in middle market companies. Its flagship fund is Redwood Capital Partners which was launched in 1995 and has raised five funds till now, with the latest one raising $1.3 billion in 2020. It invests in both equity and debt and aims to generate returns through operational improvements in portfolio companies. Some of its other significant funds are Redwood Capital IB Fund for lower middle market buyouts and Redwood Capital Debt Funds for senior debt financing.
Consumer brands investments like Waiakea water
Redwood has made some key investments in consumer brands companies. One of its successful investments has been in Waiakea Inc, a sustainable bottled water brand. Redwood invested in the company in 2015 and helped build the brand and expand distribution. It focuses on making investments in high growth consumer product and service businesses. Some of its other consumer investments have included Babyganics, California Splendor and Surface Pharmaceuticals.
Business services companies in Redwood’s portfolio
Apart from consumer brands, Redwood Capital has actively invested in business services sector companies like government IT services provider Salient CRGT. It acquired a majority stake in Salient in 2016 and supported its growth strategy through buy-and-build acquisitions. Some other business services companies in its portfolio include Garda World Security, Jobplex and MHS Global. It partners with these companies for expansion through add-on acquisitions and international growth.
Healthcare investments such as medical device companies
Redwood Capital has a long history of healthcare investing with a portfolio of investments in pharmaceutical, outsourced services, distribution and medical device companies. Some of its investments include medical education company Level Ex, contract researcher WIRB-Copernicus Group, and cardiovascular device maker Helios. It provides equity and debt capital to healthcare companies and leverages its operational resources to accelerate growth and cash flows.
In summary, Redwood Capital Investments manages several private equity funds focused on middle market companies across sectors like consumer, business services and healthcare. Its portfolio includes brands like Waiakea water, services firm Salient CRGT and medical device company Helios. It partners with management teams to improve operations and cash flows of portfolio companies.