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 2 years ago, a new ownership team, and insufficient collateral, no bank capital was available.

Why VFG Made this Royalty Investment:
The business had learned the right lessons from its loss, it had a strong management team and its growth plan to capture new markets was convincing. VFG?s investment of $500,000 required monthly debt payments amortized over 10 years plus a % of gross revenues, called a royalty payment, for 3-5 years.

The Result:
The business grew substantially in years 2 and 3. The jobs doubled, all the employees earned profit sharing rewards, and the business became fully bankable in year 3 allowing for VFG to be repaid and lowering the company?s cost of capital.

A New Product Opportunity:
After 5 years in development, an established clothing designer and manufacturer successfully developed a new type of material which helped it to win 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 1/3 of what was needed.

Why VFG Made this Sub Debt Investment:
The business had an assignable multi-million contract to deliver the product and a solid track record of on-time, on budget delivery. The business created good quality jobs so VFG teamed up with 3 local Regional Development Corporations, all of whom lent a piece of what was needed.

The Result:
The business succeeded in fulfilling the contract, the loan was paid back, 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 more capital to pay ?slotting fees? to expand into additional supermarkets, and purchase equipment to increase productivity. To minimize ownership dilution, the company wanted to raise additional equity, but also was ready for some mezzanine financing.

Why VFG Made this Near Equity Investment:
The company 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 who made an additional investment using similar terms to VFG. It is too early to predict the company?s long term performance, but in the first quarter jobs, profits and sales are all up.

Sample of VFG's Past and Present Portfolio: