Vistara Capital Partners holds first close of technology debt fund

The firm’s third vehicle is hoping to raise $100m.

Vistara Capital Partners has raised more than $40 million for the first close of its latest fund.

The Vancouver-based firm is seeking $100 million for its Vistara Technology Growth Fund III. It plans to use the money to invest in mid- to late-stage technology companies, according to founder and managing partner Randy Garg.

The tech companies Vistara targets have at least $10 million in revenue and are North America-based, but don’t have to be profitable yet. Within technology, the firm focuses on enterprise software businesses across fintech and vertical markets like healthcare. Loan sizes range from $5 million to $15 million.

“Part of our philosophy is working just as closely with founder-owned companies as with venture-backed companies,” Garg said. “We like to view ourselves [as] more of [a] growth debt firm and a direct lender into the technology space [rather than a venture lender].”

The fund has already begun its deployment with one deal underway that the firm hopes to close by the end of the month, Garg said. He added that Vistara is in talks with other potential companies with which to invest funds already raised, and that the firm hopes to hold a final close on Fund III within “several months”.

The vehicle has received repeat funding from investors in the prior two funds. All the current investors are based in Canada, but Garg noted that the firm is looking to attract outside investors as well.

“It would be great if we could place at least half our fund in Canada, but certainly not a requirement,” he said. “We are quite open.”

Vistara closed its second fund in 2016 with C$45 million ($34 million, €29 million) raised. The debut vehicle closed in 2015 after raising C$25 million. The funds have invested in startups like Getaround, Mobify and InvestEdge.

Vistara Capital Partners is a growth solutions firm focused on technology companies. Founded in 2015, it currently has $80 million in assets.