Vista plots ‘long-life’ fund offering – Exclusive

The technology-focused firm is currently raising its $10.5bn sixth flagship fund.

Vista Equity Partners, the technology-focused private equity firm, intends to add two fund families to its existing strategies, Private Equity International has learned.

The firm currently manages its flagship buyout funds, mid-market buyout funds, credit funds and a public equities strategy, according to a document seen by PEI prepared by investment consultant StepStone Group for the State of Connecticut Treasurer's Office in October last year. The firm “intends to launch a 'long-life' fund and a small buyout fund, both of which will operate solely in the enterprise software space,” the document states. 

Vista Equity Partners declined to comment on the plans, but a source with knowledge of the firm confirmed that the statements from the document were accurate as of this week.

Vista, which was founded by former Goldman Sachs banker Rob Smith in 2000, is raising its sixth flagship fund, Vista Equity Partners Fund VI (VEPF VI), which on the back of limited partner demand has raised its hard-cap to $10.5 billion from $10 billion. At this size, VEPF VI would be the largest technology-focused private equity fund ever raised. 
 
Vista introduced its first smaller buyout fund line, Vista Foundation Fund I, in 2009 according to the document. 
 
Details of the two new fund lines, such as target fund sizes, were not clear.  
 
If Vista successfully markets a longer duration private equity fund to investors, it would join a small group of private equity franchises, such as CVC Capital Partners, Carlyle Group and Blackstone, which have funds designed to hold companies beyond the typical three- to five-year time horizon. 
 
Vista has $25 billion in assets under management, according toPEI data. It invests only in software and technology-enabled businesses.

Annabelle Ju contributed to this report.