The common thread in VS&A Communications Partners' Fund II and Fund III investments is the ability to put equity capital to work to create financial, managerial and operational leverage for communications companies and executives. The actual investment situation may vary considerably, but most opportunities can be classified into the following groups: Acquisitions Fund III leads acquisitions of freestanding companies, with the participation of existing management or via an alliance with an independent management team which is pursuing acquisitions. Fund II executes add-on acquisitions for its current portfolio of platform companies.
Divisional management of communications conglomerates often respond handsomely to the entrepreneurial stimulus of stand-alone ownership. The Funds actively seek to enable corporate management to purchase discrete businesses from parent corporations, in some cases with a continuing involvement or ownership stake on the part of the parent.
Fund I successfully participated in several investments in which an operating company, serving the role of strategic partner, provided the management for an autonomous venture. As a private partnership, the Funds can exercise considerable flexibility in meeting corporate goals while satisfying their financial mandates.
Companies seeking to increase their scope significantly through acquisitions, product line extensions, or similar expansion plans may require significant capital. Equity capital and strategic guidance by Fund management and Veronis Suhler managing directors can be the cornerstone of success for such ventures.
The Funds can provide the equity capital to facilitate a recapitalization for the redemption of a founder, family or financial shareholding, or, in certain instances, to institute a turnaround.
Mezzanine Debt Investment