US private equity firm Vista Equity Partners has confirmed the $3.5bn final close of its fourth investment vehicle – a full $1bn over its initial target.
The latest fundraise means Vista now has more than $6.6bn under management in its private equity funds, which it uses to target technology-based companies.
Vista said the huge fundraise for Vista Equity Partners Fund IV was down to “exceptional” LP demand.
The fund has already made the £1.27bn purchase of UK-based banking software company Misys as well as deals for Turaz, Vitera and CDC Software.
CEO and chairman Robert Smith said, “The successful closing of VEPF IV is a continued endorsement by our LP’s of the strategy that we have refined over the last decade.
“Both our existing and our new investors have shown their confidence in our ability to acquire strategic assets, create value by implementing operational best practices using trained executives and ultimately realize consistent significant returns.”
Vista invested $200m of its own money in the new fund alongside the hard-cap of $3.3bn from investors, which included the New York State Common Retirement Fund and the New Jersey State Investment Council.
It hit a first close of $2.2bn last September, putting it just $300m short of its original target, and made further closes of $2.8bn and $3.1bn in November and March respectively.
The fund will target investments in software-related companies with enterprise values of $100m to $1bn, and plans to put money into between ten and 12 companies.
About eight of those investments will be $100m to $250m range with the remaining investments in the $350m to $400m range or higher.
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