Vector Capital’s credit strategy leverages our team’s extensive investment experience and success in the technology sector, offering creative and flexible financing solutions tailored to the specific needs of technology and tech-enabled businesses. Since our inception, we have completed over 300 investments across various areas of the credit market, including opportunistic and event-driven credit, structured capital solutions, and special situations.
Today, we continue to pursue a broad range of opportunities within the technology credit markets, including direct lending, participation in syndicated credits, and select credit secondaries. We focus on partnering with high-quality businesses in sectors such as Software, Infrastructure, Online/Internet, Government Services, Media, Telecom, Business Services, Education Services, Hardware, and Healthcare IT.
For Investors
We invest across both liquid (public) and illiquid (private) credit markets, seeking return premiums that arise from complexity, illiquidity, or specific corporate events. In public markets, we focus on event-driven credit, performing credit, and special situations. In private markets, we target sponsored and non-sponsored credits, transitional capital, unconventional borrowers, and special situation credits. Our expertise allows us to navigate opportunities with limited information, complex balance sheets, and challenges that often overwhelm generalist credit funds.
Investment Solutions
Vector Capital manages two credit funds, each with a distinct strategy and return objective. The broader Vector Capital platform offers unparalleled access to industry expertise and operational support, enhancing both our origination capabilities and portfolio management. Our investment decisions are deeply informed by our understanding of the sectors we invest in, and our sourcing is further strengthened by long-standing industry relationships.
- Vector Capital Credit Opportunity Fund focuses on a diversified portfolio of generally liquid credit securities. This strategy targets lower-volatility investments with the aim of delivering consistent returns through current income and capital appreciation. We identify opportunities through fundamental, bottom-up analysis of companies experiencing value dislocations due to operational complexity or misunderstood events.
- Vector Velocity Fund specializes in directly originated, senior secured loans to middle-market technology and tech-enabled companies. This strategy targets higher-return opportunities, balancing higher risk with the goal of generating superior returns through current income and capital appreciation. The fund provides direct loans to companies pursuing add-on acquisitions, business expansions, recapitalizations/refinancings, and those undergoing significant operational changes that require creative capital solutions.
For Companies Seeking Capital
We apply the same creative approach to credit solutions as we do with our equity investments, providing tailored solutions for complex situations. Our highly analytical, fundamentals-driven approach to due diligence helps us better understand businesses and provide optimal solutions. With our deep expertise in valuing technology companies and understanding the industry, we can quickly and effectively assess complex situations and proprietary technologies that many other credit investors overlook.
Our portfolio companies benefit from access to Vector’s broad intellectual capital, technology networks, and operational insights. We seek direct lending opportunities that address the unique needs of technology companies and their stakeholders. By structuring investments in close collaboration with key stakeholders, we help unlock a company’s full potential in revenue growth, cash flow, and overall value. Our capital supports initiatives such as leveraged buyouts, restructurings/refinancings, growth capital, and add-on acquisitions.
We offer a range of financing structures, including 1st lien, 2nd lien, unitranche, mezzanine, and equity co-investments. Our credit strategy is flexible, funding opportunities ranging from $5 million to $50 million, with the ability to structure and lead transactions up to $150 million.