Veronis Suhler Stevenson mulls options for third fund

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dollar moneyInvestment firm Veronis Suhler Stevenson (VSS) is reportedly considering options for its fourth buyout fund, which is running out of callable capital.

The fund was closed with commitments of $1.3bn in 2005 and currently still holds 16 companies, having made only four exits.

Veronis has until the end of the first quarter to call a small amount of $20m to $30m of VSS Communications Partners IV and will be out of callable capital after that, said PeHUB, citing sources.

VSS Fund IV has two years left in its ten-year fund life with two one-year extensions, which gives it four years to sell the remaining portfolio companies.

“How do you support 16 portfolio companies when you have no money? [Veronis] potentially has another four years which is a lot of time,” said a GP, according to the report.

The firm has held informal talks about a potential secondary sale of the portfolio, but it has yet to make a decision, said the sources. It is still considering a secondary for its $1bn 1999-vintage third fund, but it is not currently in talks.

VSS founding partner John Suhler retired a year ago after more than 30 years with the firm.

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