With a target of $20 billion, software investments firm Vista Equity Partners is seeking the third largest amount of capital among private equity funds in market, for its latest flagship fund, according to a report by Private Equity International.
The report cites documents prepared of a US pension fund as showing that Vista Equity Partners VIII, which launched earlier this year, has already passed the halfway mark.
A due diligence report by the chief investment officer of Connecticut Retirement Plans and Trust Funds CRTPF, prepared for the pension’s 16 November investment advisory council meeting reveals that the fund has so far raised $11 billion and that a final close is expected by October 2023.
Vista Equity Partners VIII’s Investor commitments to date include $250 million from Oregon State Treasury and $150 million from Teachers’ Retirement System of the State of Illinois, PEI data shows.
Fund VIII’s predecessor funds, the 2018-vintage Fund Vii, closed at $17 billion.
According to CRPTF documents, Vista is making a GP commitment of 10% or $2 billion to Fund VIII, which has a dual-class management fee. Class A will have a 1% management fee on aggregate commitments, which will step down to 1 of net contributed capital during the post-investment period. Class B has a 1.5% management fee of total commitments, stepping down to 1.5% of net contributed capital during the post-investment period.
Capital raised for the vehicle will be used to make 18 to 25 control investments in large and upper mid-market enterprise software and technology companies primarily in North America.
