Vista Equity Partners is raising its next middle-market fund, and it will have a new senior executive co-leading the operation, sources told Buyouts.
Vista Foundation Fund IV is targeting $3.25 billion, and does not yet have a cap, one of the sources said. Fund IV could raise upwards of $4.5 billion by the time fundraising closes, though it’s not clear at what level Vista will cap the fund, three of the sources said.
Foundation Fund IV is expected to raise quickly and a first close could come by year-end, sources said.
The co-heads of Foundation Fund IV are Principals Rob Rogers and Marc Teillon, who was moved from Vista’s flagship funds to co-lead the middle-market fund. Teillon stepped in for Alan Cline, who was named co-head of Vista’s small-cap Endeavor funds along with Rene Yang.
Foundation Fund III closed on about $3 billion in 2017. Fund II raised $1.1 billion for Fund II in 2013 and the firm collected $400 for the debut mid-market pool in 2010.
Fund II was generating a 1.73x total value to paid-in multiple as of August, according to performance information from New Jersey State Investment Council. Fund III was producing a 1.13x TVPI multiple as of the same date, according to New Jersey.
Vista’s Foundation series is one of several managed by the firm. It closed its mega Fund VII on $16 billion in September. The firm also launched its small-cap Endeavor series, closing its first small-cap fund on $560 million. It closed Fund II on $850 million, the firm announced in July.
Vista, founded by billionaire Robert Smith in 2000, also raises credit funds. It’s targeting $1.5 billion for its third credit fund. And it is targeting up to $3 billion for its debut long-life pool, called Perennial Fund.
Action Item: Reach Rob Rogers through his assistant at 512-730-2431