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Vector Capital is a private equity firm focused on value-oriented investments in technology companies. The firm invests across a range of situations including acquisitions of private companies, spinouts of non-core businesses from corporations, leveraged recapitalizations, as well as public-to-private buyouts.
The firm, which is based in San Francisco, was founded in 1997. The firm has raised over $4 billion since inception across five private equity funds. Vector is currently investing out of Vector Capital V, a $1.4 billion investment fund raised in 2017.
Vector Capital traces its origins to 1997, when the team, led by Alex Slusky, completed a spinoff from Ziff Brothers Investments. The Vector team had begun making investments in the 1990s with financial support from the Ziff family, founders of Ziff Davis Media. William Ziff's sons Dirk, Robert, and Daniel manage the family's investments through Ziff Brothers Investments. Slusky led the technology equity practice at Ziff Brothers Investments, managing a portfolio of public and private technology investments. Slusky had previously been a venture capitalist at New Enterprise Associates.
In June 2012, Vector won the shareholder vote to inject $242 million into Technicolor SA, a company focused on technology and digital media. The shareholders supported Vector's proposal over a proposal from JP Morgan. In 2015, Technicolor purchased the Scientific Atlanta division from Cisco for $600 million.
In December 2018, Vector Capital acquired Host Analytics, a provider of cloud-based enterprise performance management solutions. After the acquisition, Host Analytics' CEO Dave Kellogg and CFO Ian Charles stepped down from their position. In July 2019, Grant Halloran became Host Analytics' new CEO.
In addition, the firm has a private credit business that invests in distressed debt or lends directly to technology companies. Consisting of special vehicles and hedge funds, the credit business has about $400m of assets under management. Vector tends to focus on more junior tranches of debt such as second-lien and unsecured debt.
Among the firm's notable investments are Aladdin Knowledge Systems,, Cambium, CollabNet, Corel, Gerber Scientific, LANDesk, Register.com, SafeNet, Savi Technology, Technicolor SA, and WinZip.