First published: Wednesday, July 14, 2010

ALBANY -- A well-known Boston private equity firm is making a "significant" investment in Tech Valley Communications, the Albany-based telecommunications company.

Riverside Partners, which has invested in other Capital Region enterprises, is keeping the amount secret at this point, said TVC President Kevin O'Connor.

"We can't disclose the amount," O'Connor said. "It's a significant investment in the company. Of course, this is a capital intensive business."

The transaction needs approval from the state Public Service Commission, so when documents are filed in that case more details could emerge.

Riverside has made investments in Alteris Renewables, which has a strong local presence, and Sixnet in Clifton Park.

O'Connor said the investment will allow TVC to expand its fiber-optic network into Schenectady and Saratoga counties. He said Riverside is especially interested in the Saratoga County market because of the $4.2 billion GlobalFoundries computer chip factory that is expected to attract dozens of new high-tech companies. Those companies will need significant amounts of capacity for data that could travel over its fiber.

"We're very interested in that market," O'Connor said.

O'Connor said he chose Riverside over about a dozen other companies that were considering an investment in TWC. The deal was officially signed June 25 and is expected to get state and federal approval in 45 days.

"We believe Tech Valley Communications is poised for significant growth," said Steven F. Kaplan, a general partner at Riverside.