Vestar Capital Partners closes Fund VII with $1.1B to invest in tech startups in consumer and healthcare sectors
Vestar Capital Partners, a middle-market private equity firm, announced has closed Vestar Capital Partners VII, L.P. (“Vestar VII”) with $1.1 billion to invest in profitable and growing companies in the Consumer, Business & Technology Services, and Healthcare sectors, with a focus on family- and founder-owned opportunities. Vestar VII exceeded its $1 billion target and includes a commitment of $100 million from the General Partner and its partners and affiliates.
Founded in 1988, the New York-based Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Business & Technology Services, and Healthcare. Since its inception Vestar funds have invested $8 billion in 83 companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. Vestar employs a thematic approach to generate investment opportunities, leveraging its deep industry knowledge and experience to help drive transformative value creation in its three key sectors.
Vestar VII has already completed two platform investments to date – IRI, a global provider of big data, predictive analytics, and forward-looking insights for consumer, retail, and media companies, and Simple Mills, a leading innovative and disruptive better-for-you food brand.
Commitments came from a select group of institutional investors, a substantial majority of whom have been previous investors with the firm, and encompass a diverse mix of investors from North America, Europe, and the Middle East, including leading charitable foundations, public and corporate pensions, financial institutions, funds-of-funds, and family offices. The firm’s prior fund, Vestar Capital Partners VI, closed at $814 million in 2013, and has made 12 investments and 17 add-on acquisitions. Since its inception, the firm has raised seven private equity funds, investing $8 billion across 83 companies with a total value of approximately $50 billion.
“We are gratified by the support from many long-term investors in Vestar VII, which we believe is recognition of our successful strategy and long-term performance,” said Dan O’Connell, CEO and Founder. “Vestar’s talented investment team consistently leverages deep sector relationships to uncover overlooked opportunities, while our Vestar Resources team works closely with company management to deliver operational improvement. We thank our investors for their continued support.”