Investment Strategy & Transaction Types

Our investment mandate's adaptability is a key differentiator for management teams and co-investors. We can invest in various securities, such as equity, subordinated debt, or a combination of the two. Unlike other funds, there is no predetermined formula for the equity and debt division, allowing us to tailor each investment's capital structure.

Vanward invests in the following categories of transactions:

Control Transactions:

We acquire the majority of the company's shares and serve as its financial sponsor:

The typical structure contains an equity and subordinated debt investment by Vanward as a one-stop solution for junior capital.

This is an attractive option for owner-operators who value the certainty of closing that one junior capital provider provides.

In minority/non-control transactions and in partnership with operating executives or investors, our capital supports management buyouts, growth, recapitalizations, venture-backed companies whose investor base may have varying liquidity objectives, and investors seeking capital for partial liquidity and/or growth.

Non-Control/Minority Transactions:

We are the only institutional investor with a minority stake in an owner-operated business; otherwise, we would be a substantial minority investor in a business with institutional investors seeking a new financial partner:

Typically, we structure investments as preferred or common equity, or a combination of equity and subordinated debt.

Our investments are ideal for privately held or family-owned businesses in need of capital who wish to maintain economic control.

Collaboration with Operating Executives or Investors:

A family investment office or fundless sponsor with an existing portfolio company or new investment opportunity that requires a primary capital provider receives a combination of equity and subordinated debt from us.

We provide capital to executives to conclude a management or leveraged buyout of a company identified by the executive or ourselves.