Vertica Capital Partners

Background

Founded in 2018, Vertica Capital Partners is a New York-based private equity firm specializing exclusively in the software sector. The firm is dedicated to investing in growth-stage software companies, aiming to transform them into market leaders. With a mission to provide patient and flexible capital, Vertica focuses on growth buyouts, recapitalizations, and growth capital investments. The firm's significance in the industry is underscored by its commitment to partnering with entrepreneurs to accelerate growth through strategic support and operational expertise.

Key Strategic Focus

Vertica Capital Partners concentrates on growth-stage software companies with annual recurring revenues (ARR) between $2 million and $20 million. The firm employs a thesis-first approach, investing in companies and markets based on well-defined investment theses rather than strict growth or profitability thresholds. Vertica offers flexible structuring options, including growth buyouts, majority recapitalizations, and growth capital investments, with equity check sizes ranging from $10 million to $60 million. This flexibility allows the firm to tailor its investments to the specific needs of each company, ensuring alignment with the company's values and objectives.

Financials and Funding

Vertica Capital Partners manages over $200 million in capital, sourced from leading software entrepreneurs, university endowments, charitable foundations, family offices, pension funds, funds of funds, and other financial institutions. The firm's investment strategy includes providing growth capital, partial liquidity for shareholders, or full buyouts, depending on the needs of the portfolio companies.

Pipeline Development

Vertica has a diverse portfolio of investments in various growth stages. Notable recent investments include:

DSN: An all-in-one dental practice management software that integrates technology and dental medicine to develop next-generation cloud-based management solutions.

Campspot: A campground management platform designed to streamline operations, grow business, facilitate reservations, and enhance customer experience.

Condo Control: An all-in-one condo and HOA management software offering tools for safer and more informed communities, including access management, resident engagement, payment processing, and operational optimization.

ARMS: A modern, cloud-based public safety Computer-Aided Dispatch (CAD) and Records Management System (RMS) providing streamlined organization, simplified data entry, and guided case reporting.

Rezdy: A leading independent online booking and distribution platform for the experiences industry.

Regiondo: An online booking system for leisure and activity providers in Europe, enabling management and booking of appointments and activities through their own websites.

Checkfront: An online booking system that helps businesses manage inventories, centralize reservations, and process payments, used globally by tour, activity, and accommodation businesses.

These investments reflect Vertica's commitment to supporting innovative software solutions across various industries.

Technological Platform and Innovation

Vertica Capital Partners distinguishes itself through a deep understanding of the software industry, leveraging decades of investment experience across over 60 software companies. The firm brings operational lessons from successful companies like Kaseya, Veeam, and FareHarbor to its partners. Vertica maintains real-time information on best practices in areas such as inside sales and recruitment strategies, ensuring its portfolio companies stay ahead of the competition. Additionally, the firm has a private network of executives and functional experts from leading companies like Palo Alto Networks, Splunk, and SolarWinds, providing portfolio companies with valuable expertise and connections.

Leadership Team

Vertica Capital Partners is led by a team of experienced professionals with extensive backgrounds in software investment and operations:

Vitaly Vorobeychik: Managing Director and Co-Founder, with over two decades of experience in software investments.

Philip Vorobeychik: Managing Director and Co-Founder, bringing a wealth of knowledge in scaling software businesses.

Stephen Hoey: Chief Financial Officer, overseeing financial operations and strategy.

Jesse Javna: Principal, contributing to investment decisions and portfolio management.

Dan Parsons: Executive on the Investments Team, involved in sourcing and managing investments.

Christian Poulsen: Investment Team member, focusing on evaluating and executing investment opportunities.

Daniel Jacobs: Investment Professional, assisting in investment analysis and portfolio support.

Drew Hoffman: Investment Professional, engaged in deal sourcing and execution.

Michael Boccia: Vice President of Investment, leading investment initiatives and portfolio growth strategies.

Noah Keil: Investment Professional, supporting investment evaluation and management.

Peter Mahoney: Investment Professional, involved in investment research and execution.

Cameron Kelaita: Investment Professional, focusing on deal analysis and portfolio support.

Ryan Kim: Investment Professional, contributing to investment strategy and execution.

Gui Maniglia: Investment Professional, assisting in investment sourcing and management.

Jonathan Cogley: Executive Partner, providing strategic guidance based on his experience as the founder of Thycotic.

Alison Fischer: Executive Partner, offering expertise in software operations and growth strategies.

Tom Schodorf: Executive Partner, bringing insights from his tenure at BMC and Splunk.

This leadership team combines investment acumen with operational experience to support the growth and success of portfolio companies.

Competitor Profile

Market Insights and Dynamics

The private equity landscape for software investments is highly competitive, with numerous firms vying to invest in promising growth-stage companies. The market is characterized by substantial capital availability, a focus on technological innovation, and a drive to support companies that can scale rapidly.

Competitor Analysis

Key competitors in the software-focused private equity space include:

Vista Equity Partners: Founded in 2000, Vista manages over $100 billion in assets and invests in software, data, and technology-enabled businesses.

Silver Lake: A global technology investment firm specializing in large-scale investments in technology, technology-enabled, and related industries.

Thoma Bravo: A leading private equity firm with a focus on software and technology-enabled services sectors.

These firms have established significant market presence and have a track record of successful investments in the software industry.

Strategic Collaborations and Partnerships

Vertica Capital Partners collaborates closely with its portfolio companies, providing not only capital but also strategic support and operational expertise. The firm leverages its network of executives and functional experts from leading technology companies to offer guidance and connections that facilitate growth and market leadership.

Operational Insights

Vertica's strategic considerations include:

Flexible Investment Structures: Offering a combination of growth buyouts, majority recapitalizations, and growth capital to meet the unique needs of each company.

Thesis-Driven Investments: Focusing on well-defined investment theses rather than strict financial thresholds, allowing for investments in companies with strong potential.

Active Support: Providing portfolio companies with best practices, real-time market information, and access to a network of industry experts to accelerate growth.

These strategies position Vertica as a flexible and supportive partner for software companies seeking growth.

Strategic Opportunities and Future Directions

Vertica Capital Partners aims to continue its focus on growth-stage software companies, leveraging its experience and network to identify and invest in businesses with strong potential. The firm plans to expand its portfolio by investing in companies that align with its investment theses and can benefit from its strategic support. By maintaining a flexible and entrepreneur-first approach, Vertica is well-positioned to capitalize on emerging opportunities in the software industry.