Vector Capital’s credit strategy leverages the firm’s heritage in the technology sector by providing creative and flexible financing solutions that cater to the unique needs of technology and technology enabled businesses. We continually pursue a broad range of investment opportunities including syndicated debt, secondary market trades, and direct lending. The target investment sectors for the credit strategy are synergistic to those of Vector’s equity team, including Software/SAAS, Online/Internet, Government Services, Media, Telecom, Business Services, Education Services, Technology Hardware, and Healthcare IT. The strategy invests in debt securities at all levels of the capital structure, including first and second lien debt, high yield notes and mezzanine securities. Since the launch of our dedicated credit effort in 2008, we have invested over $800mm in over 50 credit transactions.
The Vector credit strategy provides investors access to a diverse, highly-managed credit portfolio. The strategy focuses on low volatility credit investments, generating returns through current income and capital appreciation, often crystallized through event driven situations. We identify investment opportunities by conducting thorough, fundamental and bottom-up due diligence of the securities of companies we believe are experiencing a dislocation in value due to complex, misunderstood events and situations which can be researched and analyzed. Our investment decisions are based on a deep understanding of the sectors in which we invest, and our sourcing infrastructure is augmented by the assets and relationships of the broader enterprise. As part of Vector Capital, the credit strategy has unmatched access to industry expertise and operations support to assist in both originations and portfolio management.
For Companies Seeking Capital
We continually pursue a broad range of direct lending opportunities that cater to the unique needs of technology companies and their owners. We structure our investments in partnership with management teams, enabling them to maximize the true potential of the growth, cash flow and intrinsic value of their underlying business. Our portfolio companies utilize this capital for initiatives such as leveraged buyouts, restructuring/exit financings, growth capital, acquisition financings, and recapitalizations. The direct lending team can utilize a diverse set of structures to best fit your business, including 1st Lien, 2nd Lien, uni-tranche, mezzanine and equity co-investments.
At Vector, we bring the same investor-like mindset to our credit solutions as with equity investments, employing a fundamentally driven, highly analytical approach to our diligence. The team’s extensive experience valuing technology companies and its thorough understanding of the technology industry allows us to uniquely and quickly analyze complex situations and proprietary technologies that are outside the range of most credit investors. Many of our portfolio companies also benefit from tapping into Vector’s broad intellectual capital base, technology industry networks, and operational insight.
The sizable and diverse capital base of Vector’s credit strategy enables us to fund opportunities ranging from $5mm to $50mm, and we have the ability to structure and lead transactions up to $150mm.