Vista collects more than $500m for small-cap fund

Vista Equity Partners has held a first close on more than $500 million for its second Foundation Fund that invests in small-cap software companies, according to a person with knowledge of the process. 

Foundation Fund II has no hard-cap and could hold a final close by the third quarter, the person said. The fund has been in market for about eight weeks, the person said. 

Vista Equity declined to comment. 

Robert Smith

Vista, which closed its fourth flagship fund last year on $3.5 billion, also is in the market with its debut debt fund targeting $600 million, according to an investor letter seen by Private Equity International earlier this year. 

Vista closed its first Foundation Fund on $400 million in 2010; that fund was generating a 17.4 percent internal rate of return and a 1.30x multiple as of 30 September, 2012, according to performance information from the California Public Employees’ Retirement System. 

Vista has been a fundraising machine recently, and in March the firm added former limited partner Christine Pastore as head of its newly formed investor relations team. Pastore had worked as the co-head of alternative investments for New Jersey’s state pension system prior to joining the firm.

Led by former Goldman Sachs executive Robert Smith, Vista this week announced it would acquire cyber security company Websense for about $1 billion. Websense stockholders will receive $24.75 in cash for each share, representing a premium of about 29 percent over the company’s closing price on 17 May, 2013, according to a statement from Websense.