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Vistara Capital Partners holds first close of Inaugural fund with CAD80m raised in 80 days

Vistara Capital Partners has raised CAD80 million for its inaugural fund, well in excess of its initial CAD50 million minimum target, and within an 80 day period of commencing fundraising. Vistara is targeting an overall fund size of CAD100 million.

Vistara has been co-founded and will be managed by two well respected and seasoned technology and finance executives with over four decades of collective relevant experience: Fabio Banducci, most recently as CEO of Peer 1 Hosting where he led its turnaround and growth over 8-1/2 years through to exit for CAD650 million in 2013; and Randy Garg, most recently as Managing Partner of a family office investment fund where he directly led and managed investments of over CAD80 million over the past 4-1/2 years, primarily in the technology sector.

Investors in this first closing include highly accomplished entrepreneurs and C-level executives from the technology sector and other industries, high net worth and family office investors, private foundations, and its two co-founders who have together committed in excess of 10% of the first closing amount as the General Partner.

“We are extremely grateful to our initial group of approximately 30 LP investors for their support and confidence”, says Fabio Banducci, Managing Partner. “Each of our investors provide us with a wealth of additional experience and contacts, and share our belief in the tremendous opportunity presented by enabling companies to achieve their growth objectives through providing capital, sharing connections, and collective lessons learned. As we look to close out the balance of the fund over the next few months, we will be looking to add similar minded and experienced investors to the group from across the country.”

“Vistara” (Sanskrit for “expansion”) will focus its investments on mid to later stage growth companies (CAD10 million to CAD200 million in revenue, and at or near cash flow positive) over a broad cross-section of the technology and technology-enabled services sectors, with primary focus on investing across Canada and west coast of the US.

The fund will invest in both private and public companies, providing between CAD5 million and CAD15 million per investment, with additional co-investment capacity through its network of LPs. Investments will typically be structured in the form of: non-amortizing (interest only) term debt; convertible debt; standby facilities; and/or minority equity solutions. Vistara will be looking to invest in 10 to 15 companies over the life of this first fund.

“We strongly believe there is a significant gap in the financing market for flexible, less dilutive growth capital at the mid to later stage for technology companies,” says Randy Garg, Managing Partner. “Companies at this stage are looking to grow at rates that typically outpace what they are able to receive from traditional lending sources, and may not need or want the level of dilution typically associated with larger pure equity rounds. More generally, there is also a chronic shortage of capital sources for these companies, particularly across Canada, which all too often leads many of them to sell their businesses prior to maximising their potential.”

Building on prior investment experience, Vistara’s growth capital solutions are specifically tailored to each situation and time horizon, but have proven to be well suited in circumstances such as: growth and expansion financing (organic or by acquisition); working capital challenges from business model transitions (e.g. shift to recurring revenue models); and interim growth financing prior to larger planned equity financings, IPOs, or an exit.

"Building on a 20+ year personal and business relationship, we are extremely excited to launch the Vistara Capital platform. There is a tremendous opportunity available to companies today in the technology sector to build true world-class leaders over the years to come. As evidenced by the funding commitments announced today, we believe the combination of our tailored approach to growth financing, and our unique complementary skillset developed through a number of different market cycles, positions us very well to be a true enabling partner for our portfolio companies,” says Randy Garg, Managing Partner.

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