Veritas talks to LPs about new fund after founder’s death

While the size of the new fund has not been widely discussed yet in the LP community, the firm’s earlier funds have been drawing high marks for their performance, which could boost interest.

Veritas Capital Fund IV raised $1.3 billion after closing in 2010. By late 2012, the fund was more than half way drawn down, according to a report that year by Buyouts. The firm has completed several deals since then.

Last year, Veritas Capital was one of four firms capturing the highest overall (and possible) score of 1.0 in a performance ranking by data provider Preqin, along with Inflexion Private Equity Partners, Vista Equity Partners and Wynnchurch Capital Partners. Each of these firms had three funds ranking in the top quartile, according to Preqin. 

Ramzi Musallam, managing partner of Veritas Capital, joined the firm in 1997, prior to raising Veritas Capital Fund I, according to the firm’s website. Hugh Evans, Benjamin Polk and Joe Benavides are listed as partners at the firm, which also includes two vice presidents, four associates and CFO Jason Donner on its roster. Polk is the most recent addition to the firm among the partners. He joined in 2011 after serving as lead outside counsel for the firm since 1993. McKeon’s name isn’t listed on the firm’s website.

A specialist in mid-market companies that provide products, services or solutions to government customers, Veritas Capital as been active on the deal trail of late.

• In May, its portfolio company, SI Organization, set plans to buy QinetiQ North America Services and Solutions Group, a British cybersecurity, analytics and software specialist in the public public sector, for $165 million.
• Veritas Capital portfolio company Truven Health Analytics added on Fortel Analytics’ healthcare fraud technology unit and Simpler Consulting, both in April
• In February, Veritas Capital Fund IV completed its $383 million deal to buy telecom components maker Anaren Inc. Veritas took Anaren private for $28 a share in cash, beating out a rejected offer of $23 per share in April from Vintage Capital Group.
• Last October, Veritas Capital portfolio company CRGT Inc said it purchased Guident Technologies Inc, for an undisclosed sum.

A call to Veritas Capital by Buyouts requesting comment was not immediately returned.

In September 2012, Musallam, Evans and Polk declined to be interviewed following the suicide death of McKeon. The firm issued a prepared statement that included a plan to continue “to oversee operations at Veritas and at our portfolio companies, consistent with our regular practice and as Bob would have wanted.”

Limited partners in past Veritas Capital funds include Connecticut State Employees Retirement System and The Hillman Co.