Vista holds final close on third credit fund at $2.3bn

The credit fund’s close exceeded the $1.5bn target by $800m and will target areas including non-sponsored lending

Vista Credit Partners, the credit investor of Vista Equity Partners, has held the final close of its third credit fund at $2.3 billion, the firm said in a news release.

The Vista Credit Partners Fund III surpassed its $1.5 billion target by $800 million in capital commitments from a mix of limited partners including US public pension funds, sovereign wealth funds, multinational corporations, insurance companies and others.

“As great companies remain private longer and equity dilution continues to be a pinch point, our team is focused on working with the best software and technology companies as a credit-focused capital solutions provider and value-added partner for growth,” said David Flannery, president of VCP, in the release.

The Austin-based firm plans to capitalise on non-sponsored lending, private credit, syndicated credit, opportunistic secondary market investing as well as financings in enterprise software businesses.

VCP’s third credit fund, which initially launched in 2019, has received commitments of $500 million from New York State Common Retirement Fund, $50 million from the Illinois Municipal Retirement Fund, $50 million from the State of Wisconsin Investment Board and $20 million from the Baltimore City Fire and Police Employees’ Retirement System, all public pension funds, according to Private Debt Investor research.

VCP has focused on credit investments in the enterprise software, data and technology markets since forming in 2013. It had deployed $7.6 billion and managed more than $5.2 billion in assets, as of June 2021. It has completed more than 415 deals in the software and technology sectors.

A global investment firm, Vista managed more than $81 billion in assets as of June 2021 and invests across private equity, permanent capital, credit and public equity.