Vista gears up to raise second small-cap Endeavor fund

  • Vista’s first Endeavor fund raised $560 mln
  • Led by Rene Yang Stewart and James Zubok
  • Fund targets small deals that don’t fit flagship or mid-market funds

Vista Equity’s small-cap platform, Endeavor, is coming back to market with its sophomore fund, which could target around $750 million, sources told Buyouts.

Vista Endeavor II is not yet in the market but is expected back soon, sources said. The fund target is not exactly clear and likely won’t be solid until the fund is officially out.

An LP source said the fund could target $700 million to $1 billion, likely falling around $750 million range.

Endeavor Fund I raised $560 million in 2017 for enterprise-software investments too small to fit into Vista’s flagship funds or its middle-market Foundation fund family.

Endeavor has had a management change. The strategy was led through Fund I by Principals Rene Yang Stewart and James Zubok. Zubok has moved to working on the flagship investments and Principal Alan Cline, who has worked as co-head of Vista’s Foundation fund, will co-lead Endeavor.

Yang Stewart joined Vista in 2007, prior to which she focused on M&A within Yahoo’s corporate finance group. She also worked in Lehman Brothers’ global technology group.

Zubok joined Vista in 2016, prior to which he worked at a number of Vista portfolio companies. He was president of Vista-backed Brainware before its sale to Lexmark International in 2012.

Rene Yang, Vista Equity Partners, private equity
Photo of Rene Yang Stewart courtesy of Vista Equity

“Most companies in our sweet spot are facing the difficult but fortunate decision of choosing between late-stage venture capital, growth equity and private equity. Each comes with its pros and cons,” Yang Stewart told Buyouts in a 2018 interview.

“Frankly, one of the biggest challenges we need to overcome is that many companies at this early stage aren’t familiar with private equity as an asset class. So we’re putting a lot of effort into general outreach and education on the benefits of a private equity investor.”

Endeavor in November invested in Radar Inc, which provides incident-response-management software. In August, the fund invested in ComplySci, which provides regulatory technology for financial and professional services companies.

Action Item: Read Vista’s Form ADV here: