Vault.com is the leading media company focused on careers and college admissions. Vault publishes a wide range of career-oriented online and print books and operates a popular website (www.vault.com ) that offers surveys and insider information on more than 5,000 employers, 4,000 colleges and universities, and hundreds of industries and occupations. Fortune magazine proclaimed the site “The best place on the web to prepare for a job search.” Founded in 1996 by Mark Oldman, Hussam Hamadeh and Samer Hamedeh, Vault offers information, tools and resources for job seekers, recruiters and employers. More than 3 million job candidates visit the company’s website in a typical month.
- Challenge
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Vault’s founders achieved their stated goal of “Avoiding the rat race by writing about it.” The company they founded on a shoestring in 1996 grew quickly into a multifaceted communications enterprise and unique resource for job seekers, college applicants and others looking for first-hand information about top employers and schools.
The company’s founders succeeded by sticking with a solid business model and financial controls that enabled Vault to survive—and thrive—during the dot-com boom and bust of the late 1990s. After more than a decade of success, Vault management wanted to pursue new growth opportunities, including potential acquisitions, and generate liquidity for the founders and other shareholders.
In September 2007, they sold a majority interest in Vault to Veronis Suhler Stevenson (VSS), a leading private equity firm specializing in communications, information and education. Vault’s founders and other executives remain shareholders and members of the management team. Erik Sorenson, former president of MSNBC, joined Vault as chief executive officer.
With new ownership in place, Vault was ready to move forward by hiring additional staff, adding new content and expanding the company’s already strong brand position. But first, they needed to find a ready source of capital to support their growth aspirations.
- Solution
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Vault’s management team met with several potential lenders before VSS managers suggested they consider CIT Communications, Media & Entertainment (CM&E) to provide a senior secured credit facility. VSS and CIT had worked well together on several transactions in recent years.
The CM&E group of CIT is a leading provider of strategic advisory services and financial solutions for broadcasting and publishing, communications, entertainment, gaming, information services and technology, and sports.
With their broad and deep background in the communications, information services and technology sectors, the financing specialists at CIT were already familiar with Vault’s strong and unique market position, excellent reputation, superior track record and experienced management team. CIT recognized that Vault has excellent growth potential and, with the support of VSS and a new CEO with global experience, the opportunity to expand its customer base outside North America.
- Results
- In June 2008, CIT agreed to act as sole lead arranger on a $12.5 million secured credit facility to meet Vault’s working-capital needs and fund growth opportunities, including potential acquisitions. The line of credit featured an innovative structure and a better guarantee of execution than other potential lenders could provide. While CM&E generally focuses on larger facilities, CIT was committed to meeting the needs of its long-time customer, VSS.
