Vestar has deep roots in the Consumer sector. Since our time at First Boston (over 35 years ago) we have invested in many branded companies, providing management with the resources they need to build those brands into category leaders: Prestone Products, Remington Products, Polo Jeans, Birds Eye Foods, Celestial Seasonings and more. We have supported management’s initiatives to streamline production, develop and execute innovative marketing programs, and launch dozens of new products—including entirely new categories. And the results have earned us a reputation as a true value-added partner to Consumer companies.
Nearly half of our investments have been in the Business Services sector, and we have experience across a range of business models and end markets. Our investment activity is focused on market-leading businesses with meaningful competitive differentiation and scalable operating models. We target companies in acyclical industries with attractive growth tailwinds and high barriers to entry. Typically, our investments will exhibit high visibility recurring or reoccurring revenue streams, strong customer retention with high switching costs, and attractive margins and free cash flow conversion.
Subsectors of focus that tend to align well with our target investment criteria include:
- Software and Information Services
- Business intelligence, data and analytics
- Vertical application software
- Workflow optimization
- Risk, Compliance, and Certification
- Governance, regulatory, and compliance
- Professional training and education
- Testing, inspection, and certification
- Distribution and Facilities Services
- Value-added distribution
- Route-based or outsourced facilities management
We have deep vertical and business model expertise, and rely on decades of experience to help our partners drive transformative value creation – including through M&A, geographic and end-market expansion, salesforce buildout, and R&D investment. Each management team we partner with has a different vision, but the goal is always the same: to work together over time to build a better and more valuable company.
We have been making successful investments in the Healthcare sector since the late 1990s, when we helped the physician managers of Sheridan Healthcare take the company private and build it from a local operation into a nationwide provider of outsourced medical services.
Since then our investments have spanned the healthcare spectrum, from payer and provider services—among them Essent Healthcare, a hospital management company, and the Mentor Network, a community-based care provider—to providers of low- and high-tech medical devices, such as Dynavox Systems, the leading manufacturer of speech synthesizers and other communication products.
Since 2006, we have increasingly focused on the growing need for healthcare information, healthcare media, marketing services and clinical software services. Our investments in Healthgrades, Press Ganey (realized October 2016), StayWell and Quest Analytics represent one of the most unique portfolios of healthcare information assets.
Our Healthcare team has years of leadership, operations and financial experience in the sector and an extensive network of industry contacts. We can support our management partners with the resources they need to achieve their goals, wherever their vision may take them.