A Medical Device Daily

Riverside Partners , a Boston-based private equity firm focused on middle market healthcare and technology companies, reported the closing of its third private equity fund, Riverside Fund III, at $225 million of committed capital.

Riverside Fund III includes among its limited partners the Massachusetts Institute of Technology, TIFF, Abbott Capital Management, MN Services (on behalf of its clients), and Hartford Investment Management.

Riverside specializes in customizing investments to meet the particular needs of founder- and family-owned firms. These objectives can range from providing liquidity for estate planning, helping with management succession and development, and maximizing value through retained equity. After completing an investment, Riverside dedicates its operating partners, former CEOs of lower middle market companies, to accelerate the growth of its portfolio companies.

Investments from Riverside Fund III began in 4Q05 and were highlighted by a commitment of $40 million to partnerships with three founder-owned companies: National Display Systems (Morgan Hill, California), a provider of flat panel display systems used in a range of healthcare applications; Sixnet (Albany, New York), a manufacturer of advanced industrial automation and network connectivity devices for use in demanding environments; and Quantum Medical Imaging (Ronkonkoma, New York), a developer of high quality X-ray systems for hospitals, imaging centers, and physician offices around the world.

Probitas Funds Group (San Francisco), global alternative investment services and fund placement firm, served as Riverside's placement agent. Choate, Hall, & Stewart (Boston) served as counsel to the fund.

NxStage Medical (Lawrence, Massachusetts), the manufacturer of the NxStage System One portable kidney dialysis machine, said it has established a credit facility with SVB Silicon Valley Bank, the commercial banking arm of SVB Financial Group

The facility provides for borrowings of up to $20 million through Dec. 31, 2007, with $8 million available at closing and an additional $12 million available through Dec. 31, 2007, subject to certain covenants.

“The credit line is a 24-month facility that will be used to provide additional working capital to finance installations of dialysis equipment in the field which will support our growth in the chronic market,” said David Gill, NxStage Medical's senior vice president and CFO.

NxStage develops dialysis systems for the treatment of end-stage renal disease and acute kidney failure.

Source Medical Solutions (Birmingham, Alabama), a provider of outpatient information management solutions, reported that it has established a credit facility led by Wells Fargo Foothill, part of Wells Fargo & Co., to provide new financing for the company.

The $18 million credit facility will be used to fund product development, support strategic growth opportunities and restructure existing debt, the company said.

Source Medical products include Advantx, Surgisource, Therapysource, Sourcerad and Sourceplus.