Vista Equity Partners’ credit investment platform is launching a new fund aimed at acquiring discounted debt issued by software and technology companies, as recent market volatility creates fresh opportunities in the sector, according to a report by Bloomberg.
The new vehicle, known as the Vista Tactical Credit Fund, is targeting $250m in commitments and will invest across private credit and broadly syndicated loan markets. The strategy is expected to focus on software and tech-enabled businesses operating in areas such as financial services, compliance, and healthcare, where long-term customer relationships and switching costs are seen as more resilient to disruption from artificial intelligence.
The report cites unnamed spoil familiar with the matter as revealing that the fund will prioritise companies considered to have strong competitive advantages that could help them withstand potential AI-driven pressure on parts of the software landscape. In certain circumstances, it may also invest in debt issued by portfolio companies linked to Vista itself.
The fundraising effort comes at a time when software-related credit assets have come under pressure. The Morningstar LSTA US Software & Services Loan Index recorded a 5% decline in the first quarter, marking its weakest performance since 2022, as investors reassess risk in the sector amid rapid advances in AI.
Vista Credit, which oversees more than $10bn in assets, is targeting an initial close for the fund by the end of June, according to people familiar with the process. A spokesperson for the firm reportedly declined to comment.
