Our Difference
We are not a private equity firm, a business broker, or an investment bank.
We are different.
The Typical Private Equity Investment Fund
Private Equity (PE) Firms pool money from wealthy investors into large funds, using that capital—along with massive debt—to acquire businesses. They hold these businesses just long enough to pay off the debt, then sell them for a profit, ensuring investors can cash out. Since PE firms invest other people’s money and earn a percentage of the profits, they often prioritize high returns over risk. To attract investors, they showcase past high-yield funds, often relying on risky mezzanine loans from "shadow banking" institutions. By acquiring multiple businesses at once, they hedge against inevitable bankruptcies, knowing that the profits from successful deals will outweigh the losses.
VCP's advantage is that the management group and partner company owners are the only purchasing shareholders.
We are only interested in a company to purchase for ourselves. We are investing our own money, so the risks matter very much to us. We borrow very cautiously and moderately, never using mezzanine debt. We feel that the returns we get on our money by owning a business are very good, we are not interested in “flipping” a business to impress potential outside investors with outrageous returns. When we buy a business, we do so because we believe it is a business we will still be happy to own many years down the road.