Fundraising

Vista launches its inaugural BDC, first close $500m

Galligan and Flannery to oversee the new, perpetually private, BDC focusing on tech, sources say. 

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Vista Credit Partners, the credit investing arm of Vista Equity Partners, has launched and completed the first close on a new BDC, the company’s first, the Vista Credit Strategic Lending Corp.

A person familiar with the matter said that the new Vista BDC is structured as a perpetually private BDC that will serve as a source of permanent capital for the firm.

In a letter to investors, sent out 26 September, Vista said that the $500 million first close includes a $50 million commitment from Vista Equity Partners, and includes commitments from existing investors in the equity business. According to someone who has seen the letter, it makes the point that many of the commitments come from investors new to the Credit Partners programme.

The letter, which was sent to existing and prospective investors, explained that the BDC will provide investors with access to a portfolio of enterprise software, data and tech businesses by combining two strategies: non-affiliated sponsor-backed credit and proprietary, directly originated non-sponsor FounderDirect credit.

Earlier this year, in anticipation of the launch, Vista Credit Partners structured a warehouse, the letter said, that will “provide investors with immediate access to a diversified, downside-protected seed portfolio”.

The launch of a BDC may be considered the culmination of hires that Vista Credit Partners has made in recent months. Greg Galligan, for example, joined in November 2022 as a direct lending veteran coming from Ares. Galligan at that time had more than 20 years’ experience in leveraged finance.

Likewise, Ross Teune, formerly the CFO of Golub Capital BDC, joined Vista Credit Partners in April 2023.

The letter to actual or potential investors said that Galligan will oversee the Vista BDC, along with David Flannery, senior managing director and president of VCP.

Vista is headquartered in Austin, Texas. According to PDI research, it has total assets under management of $100 billion. It was founded in 2000 and invests across private equity, permanent capital, credit and public equity strategies.