VSS Capital Partners Closes VSS SC Fund IV at Hard Cap of $530 Million
Demand from LPs is Indicative of VSS Structured Capital Funds’ Ability to Deliver Consistently Attractive Returns Across Economic Cycles
NEW YORK – December 14, 2022 – VSS Capital Partners (“VSS”), a private investment firm that targets the healthcare, education, and business services industries, today announced the successful final close of VSS Structured Capital Fund IV (“VSS SC IV”) at $530 million, exceeding its target of $400 million. The fund received strong support from existing as well as new institutional investors, including insurers, pensions, asset managers, foundations, endowments and select family offices.
“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, 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.”
“We are pleased to have closed VSS SC IV at the hard cap, with the opportunity to build on VSS’s legacy of top-quartile1 Structured Capital funds,” said Lacey Mehran, 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.”
VSS’s Structured Capital strategy represents a unique hybrid approach, providing a combination of debt and equity to growth-oriented, lower middle market companies within healthcare, education, and business services. The strategy offers the combination of non-control junior capital with the benefits of active partnership and industry expertise. The Structured Capital funds aim to achieve substantial and consistent risk-adjusted returns with the downside protection associated with debt and traditional mezzanine investments and the potential for upside gain associated with private equity investing.
Headquartered in New York, VSS is a private investment firm that invests in healthcare, business services and education companies. Since 1987, VSS has partnered with lower middle-market companies, working closely with management teams, to facilitate their next stage of growth. VSS provides capital for growth financings, recapitalizations, strategic acquisitions, and buyouts with the flexibility to invest control or non-control capital, based on the needs and objectives of each company. VSS has managed $4 billion in committed capital across 8 funds and has completed 95 platform investments and over 400 add-on acquisitions. For more information, please visit: www.vss.com.
1 Performance benchmark information sources include Preqin. Performance comparisons take into account the percentage of capital distributed to limited partners, the return on called capital multiple, and net IRR. Past performance is not an indication of future results.