The world of private equity has a new leader. Vista Equity Partners has raised $16 billion for its seventh tech buyout fund, topping recent leading capital raises from Silver Lake and Thoma Bravo.
For the past two decades, Vista Equity Partners has been backing the software industry for growth. And things aren’t slowing down for the Austin, Texas-based private equity and venture capital firm. Founded in 2000 by billionaire Robert F. Smith, Vista Equity boasts more than $50 billion in cumulative capital funding for software, data and other tech-based companies.
Part of Vista Equity’s success lies simply in its return on investments. In 2016, Vista Equity also purchased Ping Identity, a data breach software company that monitors and secures more than two billion identities through its Fortune 100 and other clients. Ping recently filed an IPO, which could further Vista’s profits.
The company also bought a major stake in Quick Base for $1 billion, took Apptio and Mindbody private for $1.94 billion and $1.9 billion, respectively, and partnered with TA Associate in backing Aptean for $1 billion.
Earlier this year, Vista Equity made the headlines when, during Smith’s commencement address to the graduating class of Morehouse College, he announced that he would pay off the enter student debt for nearly 400 students in the Atlanta school’s 2019 graduating class. Recently, Smith also funded a new technology lab for the Denver Public School (DPS).
This year alone, the company also closed $850 million in its second Endeavor fund for software companies with less than $30 million in annual revenue.
Vista is now the top of three investors pushing the software industry. This latest $16 billion investment tops Silver Lake’s recent $15 billion fund in 2017 and Thoma Bravo’s $12.6 billion new vehicle earlier this year.
