Vista Equity talking to LPs about fifth flagship fund

The firm has indicated it may set a target of $3.5 billion, the investor said.

Vista has had a run of strong fundraisings, announcing in early November a $1.1 billion final close on its second small and mid-cap fund, which had been targeting $500 million. Last year, the firm closed its fourth flagship fund on $3.5 billion, well above its target.

The firm also held a first close in October on its debut credit fund, which is targeting $600 million, according to an investor in that fund.

The first close was on roughly $120 million, according to the investor.

Vista declined to comment.

The firm is one of few in the market enjoying strong demand for their investment vehicles. In Vista’s case, its past performance has attracted LPs. The $1.3 billion Vista Equity Partners III was generating a 30.6 percent IRR and a 2.6x multiple as of March 31, according to performance information from the California Public Employees’ Retirement System.

The first Foundation fund – Vista’s small and mid-cap investment fund – was producing an 18.1 percent IRR and a 1.4x multiple as of March 31, according to the CalPERS information.

While the firm’s flagship fund and its Foundation Fund series are tested strategies that have been proven over time with solid track records, the debt fund is a new strategy for the firm.

Chris Witkowsky is editor of peHUB