Ex-Vista exec’s firm Banneker targets $250 mln for debut fund

Fund I, which invests in enterprise software companies, is expected to hold a first close in the first quarter.

Banneker Partners, formed by ex-Vista Equity senior executive Stephen Davis, is targeting $250 million for its debut fund, a person with knowledge of the firm told Buyouts.

Fund I is expected to hold a first close in the first quarter, the person said.

No one from San Francisco’s Banneker responded to a comment request. Park Hill Group is working as placement agent on the fundraising.

Banneker invests in enterprise software businesses, with enterprise values up to $50 million. Davis, a co-founder of Vista who left in 2009, formed Banneker in 2010, according to the firm’s Form ADV.

Davis leads the firm along with Partner Matthew McDonald, who prior to Banneker worked as a principal of corporate development at Square. Before, McDonald worked for eight years in private equity, including as a director at CVC Capital Partners, and seven years at Vista Equity Partners, according to his biography on Banneker’s website.

Other executives at Banneker include two ex-Serent Capital executives: Vice Presidents Terrance Bei, who also formerly worked at McKinsey & Co., and Kyle Hufford, head of business development, who also spent time as an investment banker at Dinan & Co.

The team in its current form has been together since 2017, and since last year invested $200 million across four platforms, each on a deal-by-deal basis. Those deals include Dairy.com, which specializes in dairy software; Routeware, which provides software for fleet management; education resource management firm Linq; and payment and IT services company Core Business Technologies.

Another newer firm formed by a Vista Equity executive is Butterfly Equity. Butterfly was launched by Dustin Beck, who formerly worked at Vista, and Adam Waglay, who previously worked at KKR. The firm closed its debut fund earlier this year on $520 million, as well as about $320 million for a co-investment pool.

Emerging managers raised about $47 billion as of Dec. 3, according to Buyouts research.

Update: This report was updated to include additional information about Banneker’s past investment activity, as well as expanded biographies for some executives at the firm.

Action Item: Check out Banneker’s Form ADV here: https://bit.ly/2RDn7CX