VSS Capital Partners closed the VSS Structured Capital Fund IV at $530 million, with a focus on providing debt and equity funding to growth-oriented, lower middle market companies.
The strategy offers a hybrid approach that combines non-control junior capital with the benefits of active partnership and industry expertise. VSS focuses on companies within the healthcare, education, and business services sectors.
“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.”
The firm recently boosted its investment team with the hire of Brad Corbin as principal. Corbin, who served most recently at BBH Capital Partners, will focus on sourcing new investment opportunities, performing due diligence and supporting the management teams of VSS portfolio companies.
VSS has over three decades of experience and has invested in 95 portfolio companies, with over 400 add-on acquisitions, and manages $4 billion in aggregate committed capital across eight funds.