Vista Equity Partners has closed its second fund focused on small-cap software-enabled businesses on $1.1 billion, well ahead of its original $500 million target, according to an LP source familiar with the situation.
Vista told LPs that Foundation Fund II – which includes a $100 million GP commitment – was more than four times oversubscribed from its initial target. The firm said the investor base for the new vehicle included a number of new LPs, in addition to its existing investors. Its first Foundation Fund closed on $400 million in 2010.
Vista could not be reached for comment at press time.
Like Vista Equity Partners Fund IV, the firm's flagship fund which closed on $3.5 billion in May 2012, the new Foundation fund will give Vista a “premium carry” rate of 30 percent if and when the fund's return goes higher than a 3x multiple of invested capital. Fund IV also featured some LP-friendly terms, including lower management fees, a European-style waterfall arrangement and a 100 percent deal fee offset.
San Francisco-based Vista was founded in 2000 by Robert Smith, who previously headed up the enterprise systems and storage sector at Goldman Sachs. In March this year, the firm hired Christine Pastore, previously the head of private equity at the New Jersey state pension system, to head up its new investor relations team.
Smith previously told Private Equity International that Pastore would help Vista reach out to a broader group of potential LPs. “We need to let people know we exist,” Smith said. “Christine, with her background, credibility and her insight, is a marvellous strategic addition to our family and our team in building out very strong relationships going forward.”
The firm also told LPs that it has held a first close on its debut debt fund, which according to an LP letter seen by PEI is targeting $600 million. It also said that it would “shortly” begin the marketing process for its new flagship global fund, Vista Equity Partners Fund V.