Rice Investment Group is a notable private equity firm with a strong track record and expertise in various industries. Based in New York, it was founded by Joseph Rice III and has over $1 billion in assets under management currently. Rice Investment Group makes control investments in lower middle market companies across diverse sectors like business services, healthcare, and industrials. Some of its notable investments include Addison Group, Timilon Corporation, and sweets & snacks maker Palmer Candy Company. With extensive experience and capabilities, Rice Investment Group provides strategic guidance and operational expertise to create value in its portfolio companies. In this article, we will provide an overview of Rice Investment Group, its investment strategies, portfolio companies, founders and leadership team.
Background and History of Rice Investment Group
Rice Investment Group was founded in 1997 by Joseph Rice III who serves as the Managing Partner currently. Joseph Rice has over 30 years of private equity experience and was previously a Managing Director at Donaldson, Lufkin & Jenrette.
The firm makes control investments in profitable, well-managed companies in the lower middle market typically with $10-50 million of EBITDA. It has invested over $1.4 billion in 35 platform investments so far.
Some of the industries Rice Investment Group focuses on include business services, healthcare, niche manufacturing, value-added distribution, and consumer products & services.
Over the years, Rice Investment Group has developed expertise in creating value through add-on acquisitions, revenue growth strategies, operational improvements, and talent upgrades.
Investment Strategies and Approach
Rice Investment Group employs a number of strategies and approaches to create value in its portfolio companies:
– Buy and Build: Executing add-on acquisitions to enable growth and consolidate fragmented markets.
– Revenue Growth: Focusing on top-line growth through new products, customers, markets, and channels.
– Margin Expansion: Driving productivity gains, cost reductions, and operational improvements.
– Human Capital: Upgrading talent by recruiting seasoned executives and industry veterans.
– ESG: Implementing environmental, social and governance best practices.
The firm has a flexible hold period and generally exits investments between 3-7 years through strategic sales and recapitalizations. The team prides itself on close partnerships with management teams.
Notable Portfolio Companies
Some of the notable current and former portfolio companies of Rice Investment Group include:
– Addison Group: Provider of professional staffing services acquired by Rice in 2014. Rice helped execute several add-on acquisitions.
– Palmer Candy Company: Manufacturer of candy and snack products. Rice partnered with management in 2018 to accelerate growth.
– Timilon Corporation: Distributor of specialty chemicals and ingredients. Rice invested in the company in 2016.
– Americold Logistics: Temperature controlled storage operator that Rice invested in and helped go public.
– Birds Eye Foods: Leading frozen vegetable brand that was in Rice’s portfolio before being sold to Pinnacle Foods.
– Champion Energy Services: Retail electricity provider scaled by Rice via add-on acquisitions before exit.
Through its operational expertise and strategic guidance, Rice Investment Group has created significant value across its portfolio companies over the years.
Founders and Leadership Team
Rice Investment Group was founded by Joseph Rice III who serves as the Managing Partner currently.
Joseph Rice has over 30 years of private equity experience. He was previously a Managing Director at Donaldson, Lufkin & Jenrette where he led DLJ Merchant Banking Partners.
Other key executives and partners include:
– Michael Carroll – Partner
– Aran Ryan – Partner
– Jonathan Altman – Partner
– Chris Terry – Principal
– Ryan Fagan – Vice President
The senior leadership team has extensive private equity experience spanning origination, underwriting, portfolio company oversight, and exits.
Rice Investment Group is a prominent private equity firm founded by Joseph Rice III in 1997. It focuses on control investments in the lower middle market across sectors like business services, healthcare, and niche manufacturing. With over $1.4 billion invested in 35 platform companies, Rice Investment Group provides strategic and operational expertise to create value in its portfolio through growth, acquisitions, and performance improvements.