Vista Equity Partners has held an initial close on its sixth flagship fund and set a hard cap of $10 billion, according to reports. If that target is reached, it would be the firm’s largest fundraising by far, easily exceeding its $5.8 billion Fund V, which closed in 2014.
Like all Vista vehicles, the firm’s Fund V has been put to work investing in tech companies, including a $4.3 billion buyout of TIBCO Software and a $6.5 billion take-private acquisition of risk-management business Solera completed earlier this month. Already, some large exits are in the pipeline, too: Vista has agreed to sell payment processing provider TransFirst to TSYS for $2.35 billion, fewer than 18 months after acquiring the company for $1.5 billion. It’s of course early in the fund’s lifespan, but the initial evidence holds promise.
Going further into the Vista archives reveals more impressive results. Vista Partners Fund IV, a $3.5 billion vehicle closed in 2012, has an IRR of 21.42% as of the end of last year. The firm’s two previous funds have also generated top-quartile returns. Its $1.3 billion Fund III (closed in 2008) boasts a lofty 28.8% IRR, while the $1 billion Vista Equity Fund II logged a 29.2% IRR and a staggering 2.73x DPI.
Investors in the firm’s newest vehicle are surely hoping Vista can keep it up. Here are some other recent funds from notable tech-focused PE firms: