Vista nears target for second software debt fund

The credit investment firm has far outpaced the equity commitments its first fund garnered. 

Vista Equity Partners has secured $757 million for its Vista Credit Opportunities Fund II, putting it more than three-quarters of the way to the vehicle’s $1 billion goal, according to US Securities and Exchange Commission regulatory filings.

The Austin, Texas-based alternative asset manager will invest in both primary and secondary loans in the software debt market, according to documents from the New York State Common Retirement Fund, which committed $200 million.

The Illinois Municipal Retirement Fund and the State of Wisconsin Investment also committed $50 million each, according to PDI data. Deutsche Bank Securities is serving as the fund’s placement agent, the SEC documents showed.

The firm has rounded up enough commitments to blow past the $196 million raised for VCOF I. The debut vehicle for the strategy set a target of $600 million, according to PDI data.

Vista targets its investments in companies that have a large recurring revenue stream, favourable customer characteristics, an experienced management team and financial sponsor and a strong historical financial performance and high free cash flow, according to the firm’s website.