Veronis Suhler Stevenson Starts DM, Ad Fund

Share this article:
Veronis Suhler Stevenson, a merchant bank, is looking at minority investments in direct media, advertising, cable television, consumer magazines, newspapers and radio with a fund it created this year.


The VSS Mezzanine Partners LP fund provides mezzanine capital for financing acquisitions, management buyouts, going-private transactions, growth equity investments and recapitalizations. It differs from other VSS funds by making minority investments in companies and not taking a controlling interest.


"We saw the opportunity beginning a few years ago to form this mezzanine fund to capitalize on what we view as non-control investing, where we wouldn't necessarily take control of the company," said George L. Cole, co-manager of the fund.


The fund would be an option for small to midsize media and marketing concerns with strong track records, including family-owned businesses looking to expand through acquisition or organic growth, Cole said.


Though it also will evaluate turn-around situations or distressed operations, the fund's focus is on stable companies with recurring cash flow. Target companies typically are characterized by trailing EBITDA of $5 million or more.


Typical transactions are expected to range from $10 million to $75 million. Cole said that though a few investments are being considered, none have closed.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Data/Analytics

One Third of Companies Fail to Measure Data Quality ROI

One Third of Companies Fail to Measure Data ...

Twenty percent of companies assume their data quality tools pay off, while another 10% doesn't monitor ROI at all.

Ensighten and Anametrix Unite in an Open Relationship

Ensighten and Anametrix Unite in an Open Relationship

Ensighten's purchase of the analytics company is about giving ultimate ownership of data to marketers, says CEO Josh Manion.

The Perils (and Positives) of Vanity Metrics

The Perils (and Positives) of Vanity Metrics

Experts break down the up- and downsides of popular vanity metrics, such as Facebook likes and Twitter followers.