Vistara Capital Partners, a Vancouver, British Columbia-based private equity firm focused on deploying capital in mid-to-late stage technology businesses, has secured $80 million for the first close of its debut fund, according to a statement by the firm.
The firm's general partners (GPs) committed more than 10 percent of the capital for the first raise of Vistara Capital Partners Fund I LP, which exceeded its $50 million minimum. A host of individual investors from the technology industry, coupled with high net worth and family office investors, contributed the remainder of capital in under three months and pushed the fund's total number of limited partners (LPs) to 30.
Fabio Banducci, managing partner of Vistara and former chief executive of Peer 1 Hosting, said the fund's managers will be looking to add similar, experienced investors to the limited partnership as its GPs seek to raise $100 million for the fund's final close. Banducci is joined at Vistara's helm by ex-family office executive Randy Garg, who will serve as managing partner of the Canadian investment group.
“We strongly believe there is a significant gap in the financing market for flexible, less dilutive growth capital at the mid to later stage for technology companies,” Garg noted in the firm's fundraising announcement.
Vistara, which translates from Sanskrit into the word “expansion”, will look to invest $5 million and $15 million in technology or tech-enabled service companies with $10 million to $200 million in revenue, primarily 10 to 15 companies located in Canada or the U.S. west coast. The firm's investments will take the form of minority equity, convertible debt or non-amortising term loans, mainly in privately held and publicly traded businesses that are cash flow positive or close to turning a profit.