Portfolio

Vested for Growth's portfolio represents some of the most innovative companies in New Hampshire. While the portfolio changes over time, here are a few examples of current companies, as well as some previous success stories that show what can happen when the right team gets the right type of capital.

An acquisition opportunity

A local buyer wanted to buy a mature manufacturing business whose welding product dominated a niche market. To close, the buyer needed $500,000 from a bank, but since the business had a loss two years earlier, a new ownership team, and insufficient collateral, no bank capital was available.

Why VFG made this royalty investment

Bortech's owner had learned the right lessons from the business's loss. He had a strong management team and a convincing growth plan to capture new markets.  VFG's investment of $500,000 required monthly debt payments amortized over 10 years plus a percentage of gross revenues, called a royalty payment, for three to five years.

The result

Bortech grew substantially in years two and three. The number of jobs doubled, all the employees earned profit-sharing rewards, and the business became fully bankable in year three, allowing its owner to repay VFG and lower the company's cost of capital.

A new product opportunity

After five years in development, an established clothing designer and manufacturer successfully created a new type of material and won a substantial government contract. Unfortunately, the business did not have enough capital to buy the needed inventory and its bank was only able to commit one-third of what was needed.

Why VFG made this sub-debt investment

Wild Things had an assignable multi-million contract to deliver the product and a solid track record of on-time, on-budget delivery. The owners were creating good jobs, so VFG teamed up with three local regional development corporations, all of which lent a piece of what was needed.

The result

Wild Things succeeded in fulfilling the contract, the loan was repaid, the company established a positive track record in the market, and was now in a position to continue pursuing larger customers.

A growth opportunity

This equity-backed food-manufacturing company was growing but needed capital to pay "slotting fees" to expand into additional supermarkets, and to purchase equipment to increase productivity. To minimize ownership dilution, the company needed a source of mezzanine financing, along with additional equity.

Why VFG made this near-equity investment

Rustic Crust enjoyed strong management, with years of industry experience, and had a solid growth proposition. Also, the equity backers were experienced, patient and had managed the company for a double bottom line – good profits and good jobs.

The result

After VFG made its investment, it teamed up with RSF Social Finance, which made an additional investment using similar terms as VFG's. It is too early to predict the company's long-term performance, but in the first quarter after the deal, jobs, profits and sales were all up.