april Review
Building on a strong first quarter, we announced transactions across all three of our private equity funds in April, including investments, add-on acquisitions and the exit of Datto. We also held our Annual General Meeting in New York, received recognition for three of our recent investments and celebrated Earth Day as a firm.
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12
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PE PLATFORM INVESTMENTS
PE
ADD-ON AQUISITIONS
PE MONETIZATION
INITIAL PUBLIC OFFERING
VPS SERIES C PRIVATE INVESTMENT
Vista is a leading global investment firm with more than $93 billion in assets under management as of December 31, 2021.
The firm exclusively invests in enterprise software, data and technology-enabled organizations across private equity, permanent capital, credit and public equity strategies, bringing an approach that prioritizes creating enduring market value for the benefit of its global ecosystem of investors, companies, customers and employees. Vista’s investments are anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions and proven, flexible management techniques that drive sustainable growth. Vista believes the transformative power of technology is the key to an even better future – a healthier planet, a smarter economy, a diverse and inclusive community and a broader path to prosperity.
READ MORE UPDATES
Legal Information +
Our team announced six transactions in April, including our majority investment in Critical Start. As a leading provider of managed detection and response (MDR) cybersecurity solutions, Critical Start’s platform helps organizations identify, assess and respond to cyber threats in real time while analyzing threat data to inform future responses. Given the ever-growing demand for MDR solutions, we’re excited to partner with Rob Davis, Founder and CEO, and the rest of the team at Critical Start to accelerate growth and rapidly scale the breadth and depth of its MDR offerings.
Investing in Enterprise Software
Scaling Responsibly
PLATFORM
Flagship
Fund
MONETIZATION
Flagship Fund
This document is not for the purpose of soliciting investors for any Vista Fund. Under no circumstances should the information provided be considered an offer to sell, or a solicitation to buy, any security. While the information provided herein is believed to be accurate and reliable, Vista Equity Partners, its advisors and employees make no express warranty as to its completeness or accuracy. The metrics regarding select aspects of portfolio company operations were selected by Vista on a subjective basis. Such metrics are provided solely for illustrative purposes to demonstrate elements of such companies' business, are incomplete, and are not necessarily indicative of the company's performance or overall operations. The information provided is strictly confidential and may not be reproduced or disseminated to any third parties without the written consent of Vista. Certain transactions may not be publicly announced at the time of distribution of this document and are therefore not included. Please view www.vistaequitypartners.com for additional information regarding Vista’s strategies and past and present investments. ©2022 Vista
The content of this Newsletter is for general, informational purposes. Vista Equity Partners does not make any representation or warranty of any kind, express or implied, as to the accuracy or completeness of the information contained herein. Under no circumstances should the information presented be considered an offer to sell, or a solicitation to buy, any security. Such offer or solicitation may only be made pursuant to the current offering documents for the relevant Vista Fund (the “Fund”) which may only be provided to accredited investors and qualified purchasers as defined under the Securities Act of 1933 and the Investment Company Act of 1940. While the information provided herein is believed to be accurate and reliable, Vista Equity Partners, its advisors and employees make no express warranty as to its completeness or accuracy.
Although the Newsletter may include investment-related information, nothing in the Newsletter is a recommendation that you purchase, sell or hold any security or other investment, or that you should pursue any investment strategy, and no information or Content (as defined below) on the Newsletter is to be relied upon for the purpose of making or communicating investment or other decisions. Nothing in the Newsletter is intended to be, and you should not consider anything on the Newsletter to be investment, accounting, tax, legal or other professional advice.
The information provided in this Newsletter may not be reproduced, distributed or communicated, in whole or in part, to any third party without the express written consent of Vista Equity Partners.
This Newsletter includes information regarding Vista Equity Partners’ past and present portfolio companies. It should not be assumed that investments made in the future will be comparable in quality or performance to the investments described herein. Further, references to Vista Equity Partners’ past and present portfolio companies should not be construed as a recommendation of any particular investment or security. The portfolio companies listed should not be assumed to have been profitable. Any past performance information in the Newsletter is not necessarily indicative, or a guarantee, of future results.
2022 Mergers and Acquisitions Mid-Market Deal of the Year nominees were required to apply for nomination. The Recognitions do not include information on all applicable private equity funds available for investment or all vintages of such private equity funds and therefore are necessarily incomplete. In particular, the Recognitions do not include the results of private equity funds that do not meet the specified investment strategy or other specified criteria, or that were raised prior to or subsequent to the cut-off dates specified in the criteria for such Recognitions. Inclusion of such private equity funds could materially affect the relative positioning of the private equity firms shown in the Recognitions. In addition, the Recognitions make certain assumptions and weightings, and other assumptions or weightings could lead to materially different results. Because the methodologies of the Recognitions are proprietary, it is not possible for a private equity firm to assess the universe of private funds included, including an assessment of whether such funds have investment programs or risk/return profiles similar to that of the funds managed by such firm. Use of other methodologies might lead to a private equity fund or firm being ranked in a materially different position. In addition, any Recognition that represents an aggregate performance of any private equity firm’s funds, including but not limited to the above mentioned Recognitions, is not necessarily indicative of any one investor’s experience. For the foregoing and other reasons, the Recognitions may not be an appropriate measure by which to assess the performance of any private equity fund.
The Newsletter may contain forward-looking statements (including those relating to current and future market conditions and trends in respect thereof) that are not historical facts and are based on current expectations, estimates, projections, opinions and/or beliefs of Vista. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. In addition, no representation or warranty is made with respect to the reasonableness of any estimates, forecasts, illustrations, prospects or returns, which should be regarded as illustrative only, or that any profits will be realized. Actual events or results or actual performance of the relevant Fund (or any other entity referred to in the Newsletter) may differ materially from those reflected or contemplated in such forward-looking statements. As a result, investors should not rely on such forward-looking statements in making their investment decisions. No representation or warranty is made as to future performance or such forward-looking statements. (M-225612)
Please see Disclosures at https://www.vistaequitypartners.com/disclosures/ for further information.
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Rob Davis, Founder and CEO, Critical Start
We are thrilled to partner with Vista given their team’s deep understanding of the enterprise technology and security landscape and the resources they can deliver to help us continue along our tremendous growth trajectory."
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ADD-ON
Flagship
Fund
ADD-ON
Flagship
Fund
ADD-ON
Endeavor
Fund
platform
Foundation Fund
Platform
Endeavor
Fund
Add-On
Endeavor
Fund
Add-On
Foundation
Fund
Add-ON
Endeavor
Fund
April Announced Transactions
Terms not disclosed
Terms not disclosed
Terms not disclosed
$43MM
$215MM+
We gathered in New York for our Annual General Meeting. After over two years of meeting virtually with many of our Limited Partners, we were excited to reconnect in person. Vista has experienced significant growth over the last two years, and we’re deeply grateful for our investors, companies and team members whose efforts have enabled us to accelerate our shared success and deliver results at scale through the transformational power of technology.
2022 Annual General Meeting
Vista’s Founder, Chairman and CEO Robert F. Smith recently contributed an essay to Milken Institute’s Power of Ideas series. In the article, Robert shares how businesses can build systematic approaches that create consistent outcomes and why scaling ESG and DE&I solutions will lead to a better future.
We announced the take-private of Datto in April, which is pending sale to Kaseya at a valuation of $6.2 billion following a period of rapid growth during its time in the Vista portfolio. After acquiring Datto in December 2017, we merged it with Autotask, a Vista Foundation Fund company, based on an investment thesis to create the world’s broadest MSP platform. Partnering with Datto’s founder and management team, we accelerated organic growth across the enterprise — implementing best practices across sales, customer acquisition and customer experience — and completed three add-ons to further strengthen the product suite. During this time, Datto’s annual revenue more than doubled to $620 million, headcount increased from ~800 to more than 2,000 and its MSP customer base has grown to over 19,000.
Congratulations and best wishes to the Datto team on this exciting milestone. This exit represents a meaningful monetization event for both Vista’s Flagship and Foundation Funds.
Datto Exit
APRIL REVIEW
Investing in
Enterprise Software
Terms not disclosed
Add-On
Endeavor
fund
Terms not disclosed
add-on
Endeavor Fund
add-on
Foundation
Fund
Terms not disclosed
Platform
$43MM
Endeavor
Fund
Platform
Foundation Fund
$215MM+
April Announced Transactions
READ MORE UPDATES
Vista is a leading global investment firm with more than $86 billion in assets under management as of December 31, 2021. The firm exclusively invests in enterprise software, data and technology-enabled organizations across private equity, permanent capital, credit and public equity strategies, bringing an approach that prioritizes creating enduring market value for the benefit of its global ecosystem of investors, companies, customers and employees. Vista’s investments are anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions and proven, flexible management techniques that drive sustainable growth. Vista believes the transformative power of technology is the key to an even better future – a healthier planet, a smarter economy, a diverse and inclusive community and a broader path to prosperity.
Legal Information +
This document is not for the purpose of soliciting investors for any Vista Fund. Under no circumstances should the information provided be considered an offer to sell, or a solicitation to buy, any security. While the information provided herein is believed to be accurate and reliable, Vista Equity Partners, its advisors and employees make no express warranty as to its completeness or accuracy. The metrics regarding select aspects of portfolio company operations were selected by Vista on a subjective basis. Such metrics are provided solely for illustrative purposes to demonstrate elements of such companies' business, are incomplete, and are not necessarily indicative of the company's performance or overall operations. The information provided is strictly confidential and may not be reproduced or disseminated to any third parties without the written consent of Vista. Certain transactions may not be publicly announced at the time of distribution of this document and are therefore not included. Please view www.vistaequitypartners.com for additional information regarding Vista’s strategies and past and present investments. ©2022 Vista
The content of this Newsletter is for general, informational purposes. Vista Equity Partners does not make any representation or warranty of any kind, express or implied, as to the accuracy or completeness of the information contained herein. Under no circumstances should the information presented be considered an offer to sell, or a solicitation to buy, any security. Such offer or solicitation may only be made pursuant to the current offering documents for the relevant Vista Fund (the “Fund”) which may only be provided to accredited investors and qualified purchasers as defined under the Securities Act of 1933 and the Investment Company Act of 1940. While the information provided herein is believed to be accurate and reliable, Vista Equity Partners, its advisors and employees make no express warranty as to its completeness or accuracy.
Although the Newsletter may include investment-related information, nothing in the Newsletter is a recommendation that you purchase, sell or hold any security or other investment, or that you should pursue any investment strategy, and no information or Content (as defined below) on the Newsletter is to be relied upon for the purpose of making or communicating investment or other decisions. Nothing in the Newsletter is intended to be, and you should not consider anything on the Newsletter to be investment, accounting, tax, legal or other professional advice.
The information provided in this Newsletter may not be reproduced, distributed or communicated, in whole or in part, to any third party without the express written consent of Vista Equity Partners.
This Newsletter includes information regarding Vista Equity Partners’ past and present portfolio companies. It should not be assumed that investments made in the future will be comparable in quality or performance to the investments described herein. Further, references to Vista Equity Partners’ past and present portfolio companies should not be construed as a recommendation of any particular investment or security. The portfolio companies listed should not be assumed to have been profitable. Any past performance information in the Newsletter is not necessarily indicative, or a guarantee, of future results.
2022 Mergers and Acquisitions Mid-Market Deal of the Year nominees were required to apply for nomination. The Recognitions do not include information on all applicable private equity funds available for investment or all vintages of such private equity funds and therefore are necessarily incomplete. In particular, the Recognitions do not include the results of private equity funds that do not meet the specified investment strategy or other specified criteria, or that were raised prior to or subsequent to the cut-off dates specified in the criteria for such Recognitions. Inclusion of such private equity funds could materially affect the relative positioning of the private equity firms shown in the Recognitions. In addition, the Recognitions make certain assumptions and weightings, and other assumptions or weightings could lead to materially different results. Because the methodologies of the Recognitions are proprietary, it is not possible for a private equity firm to assess the universe of private funds included, including an assessment of whether such funds have investment programs or risk/return profiles similar to that of the funds managed by such firm. Use of other methodologies might lead to a private equity fund or firm being ranked in a materially different position. In addition, any Recognition that represents an aggregate performance of any private equity firm’s funds, including but not limited to the above mentioned Recognitions, is not necessarily indicative of any one investor’s experience. For the foregoing and other reasons, the Recognitions may not be an appropriate measure by which to assess the performance of any private equity fund.
The Newsletter may contain forward-looking statements (including those relating to current and future market conditions and trends in respect thereof) that are not historical facts and are based on current expectations, estimates, projections, opinions and/or beliefs of Vista. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. In addition, no representation or warranty is made with respect to the reasonableness of any estimates, forecasts, illustrations, prospects or returns, which should be regarded as illustrative only, or that any profits will be realized. Actual events or results or actual performance of the relevant Fund (or any other entity referred to in the Newsletter) may differ materially from those reflected or contemplated in such forward-looking statements. As a result, investors should not rely on such forward-looking statements in making their investment decisions. No representation or warranty is made as to future performance or such forward-looking statements. (M-225612)
Please see Disclosures at https://www.vistaequitypartners.com/disclosures/ for further information.
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$6.2BN
Monetization
Flagship & Foundation
Fund
1
Mergers & Acquisitions recently released their list of the 2022 Middle-Market Deals of the Year. Vista was recognized for the Deal of the Year in the Enterprise Software Sector for our acquisition of Drift and for Technology Deal of the Year for our sale of Zego to Global Payments. We also received an honorable mention in the Enterprise Software category for our acquisition of ARCOS.
These recognitions speak to Vista’s reputation as a leader in enterprise software investing and to our strong relationships with founders, leaders and teams looking to take their companies to the next level.
Middle-Market
Deals of the Year
Vista continues to invest in our planet and recognizes that the scope and scale of our technology ecosystem give us an opportunity – and responsibility – to drive lasting environmental change. We embrace ESG practices as a firm, and encourage implementation across our portfolio, to help reduce emissions and ensure a healthier planet for future generations.
Last year, we became one of the first North American private equity firms to commit to the Net Zero Asset Managers Initiative. In doing so, we pledged to reduce private equity and permanent capital portfolio company emissions by 50% by 2030 and to emit net zero GHG emissions across the portfolio by 2050. To help monitor our progress on this and other ESG goals, we send an annual ESG assessment to our entire portfolio. We are pleased to announce that once again this year, we received 100% participation in our assessment.
Learn more about Vista’s commitment to ESG here.
Celebrating Earth Day
[1] The transaction is pending close and there can be no guarantee that the agreement will be consummated at all, or on the current terms.
We are delighted to announce that Lauren Dillard has joined Vista as Chief Financial Officer and Senior Managing Director.
Lauren served as the Executive Vice President of Investment Intelligence for Nasdaq, where she was responsible for leading the strategic direction of the fast-growing division, driving expansion across Nasdaq’s index, data and investment analytics businesses for a diverse client base of global asset managers, asset owners, consultants, retail brokers and fintechs. Prior to joining Nasdaq, Lauren spent 17 years at The Carlyle Group, where she was most recently a Partner and Head of the Investment Solutions unit.
Vista’s former Chief Financial Officer John Warnken-Brill is retiring after over 15 years of dedicated service. After joining Vista in 2006, John has been invaluable in helping lay the foundation for Vista’s tremendous growth, and we wish him and his family the best as he starts his next chapter.
Leadership Update
$6.2BN
Monetization
Flagship & Foundation Fund
1
Rachel Arnold, Endeavor Fund Co-Head, Senior Managing Director; Adrian Alonso, Managing Director, Flagship Fund; Khalida Ali, Director, Diversity and Inclusion; and Jack Dillon, Senior Vice President, Flagship Fund share perspectives on Vista’s talent strategy during our 2022 Annual General Meeting in New York on Thursday, April 28, 2022.
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We announced the take-private of Datto in April, which is pending sale to Kaseya at a valuation of $6.2 billion following a period of rapid growth during its time in the Vista portfolio. After acquiring Datto in December 2017, we merged it with Autotask, a Vista Foundation Fund company, based on an investment thesis to create the world’s broadest MSP platform. Partnering with Datto’s founder and management team, we accelerated organic growth across the enterprise — implementing best practices across sales, customer acquisition and customer experience — and completed three add-ons to further strengthen the product suite. During this time, Datto’s annual revenue more than doubled to $620 million, headcount increased from ~800 to more than 2,000 and its MSP customer base has grown to over 19,000.
Congratulations and best wishes to the Datto team on this exciting milestone. This exit represents a meaningful monetization event for both Vista’s Flagship and Foundation Funds.
Middle-Market
Deals of the Year
Mergers & Acquisitions recently released their list of the 2022 Middle-Market Deals of the Year. Vista was recognized for the Deal of the Year in the Enterprise Software Sector for our acquisition of Drift and for Technology Deal of the Year for our sale of Zego to Global Payments. We also received an honorable mention in the Enterprise Software category for our acquisition of ARCOS.
These recognitions speak to Vista’s reputation as a leader in enterprise software investing and to our strong relationships with founders, leaders and teams looking to take their companies to the next level.
Leadership Update
We are delighted to announce that Lauren Dillard has joined Vista as Chief Financial Officer and Senior Managing Director.
Lauren served as the Executive Vice President of Investment Intelligence for Nasdaq, where she was responsible for leading the strategic direction of the fast-growing division, driving expansion across Nasdaq’s index, data and investment analytics businesses for a diverse client base of global asset managers, asset owners, consultants, retail brokers and fintechs. Prior to joining Nasdaq, Lauren spent 17 years at The Carlyle Group, where she was most recently a Partner and Head of the Investment Solutions unit.
Vista’s former Chief Financial Officer John Warnken-Brill is retiring after over 15 years of dedicated service. After joining Vista in 2006, John has been invaluable in helping lay the foundation for Vista’s tremendous growth, and we wish him and his family the best as he starts his next chapter.
Celebrating Earth Day
Vista continues to invest in our planet and recognizes that the scope and scale of our technology ecosystem give us an opportunity – and responsibility – to drive lasting environmental change. We embrace ESG practices as a firm, and encourage implementation across our portfolio,
to help reduce emissions and ensure a
healthier planet for future generations.
Last year, we became one of the first North American private equity firms to commit to the Net Zero Asset Managers Initiative. In doing so, we pledged to reduce private equity and permanent capital portfolio company emissions by 50% by 2030 and to emit net zero GHG emissions across the portfolio by 2050.
To help monitor our progress on this and
other ESG goals, we send an annual ESG assessment to our entire portfolio. We are pleased to announce that once again this
year, we received 100% participation in
our assessment.
Learn more about Vista’s commitment to ESG.