VSS Capital Partners (VSS) has held a hard cap close of VSS Structured Capital Fund IV LP (Fund SC IV) with $530 million of capital.
New York-based VSS (formerly Veronis Suhler Stevenson) makes control and non-control investments from $10 million to $50 million in companies with $1 million to $25 million of EBITDA that are active in the business services, healthcare IT and services, education, and information sectors. Investments can take the form of mezzanine debt, subordinated debt, preferred and common equity.
The firm was founded in 1987 and has made investments in 95 portfolio companies, with over 400 add-on acquisitions. With the closing of Fund SC IV, VSS now manages $4 billion in aggregate committed capital across eight funds.
Fund SC IV was backed by both new and existing limited partners including insurance companies, pension plans, asset managers, foundations, endowments and family offices.
“We are pleased to have closed Fund SC IV at its hard cap, with the opportunity to build on VSS’s legacy of top-quartile structured capital funds,” said Lacey Mehran, a managing director and head of investor relations at VSS. “The interest we’ve seen from investors reflects our proven ability to consistently generate attractive risk-adjusted returns across economic cycles by providing a hybrid solution to companies seeking a capital partner to facilitate their next stage of growth.”
Fund SC IV invests both equity and mezzanine debt in lower middle-market healthcare, education, and business services companies.
“The current inflationary and recession-prone market environment bodes particularly well for structured capital funds, given the dilutive nature of many equity-only solutions that become less attractive in recessionary environments,” said Jeffrey Stevenson, a managing partner of VSS. “Coupled with our differentiated sector focus, decades of experience, and strong industry relationships, we are confident about the opportunities that lay ahead to deploy capital for this fund.”
In October, VSS invested in the Center for Rheumatology (CFR), a Los Angeles-headquartered specialty medical practice that provides services for the treatment of arthritis, rheumatoid arthritis, celiac disease, psoriasis, lupus, gout, and myofascial conditions. CFR’s capabilities include infusion treatments, phlebotomy and laboratory services, bone density tests, musculoskeletal ultrasounds, and digital X-ray exams.
© 2022 Private Equity Professional | December 15, 2022
