August Review
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ADD-ON AQUISITIONS
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INITIAL PUBLIC OFFERING
VPS SERIES C PRIVATE INVESTMENT
Vista is a leading global investment firm with more than $96 billion in assets under management as of March 31, 2022.
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 +
Investing in Enterprise Software
Ideas to Inspire
PLATFORM
Flagship
Fund
MONETIZATION
Flagship Fund
This document is intended to provide general information regarding Vista’s investing experience and 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. Such offer or solicitation may only be made to accredited investors and qualified purchasers pursuant to the current offering documents of the relevant Vista Fund. The information provided may not be reproduced or disseminated to any third parties without the written consent of Vista. The past performance of previous Vista Funds and portfolio companies is not necessarily indicative of future results. Investors in Vista Funds may lose investment capital. There can be no assurance that any future Vista Funds or portfolio companies will achieve comparable results. Additional important disclosures can be found here. ©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. 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.
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.
2022 GrowthCap recognition nominees were required to apply for nomination, which included a participation fee.
Please see Disclosures at https://www.vistaequitypartners.com/disclosures/ for further information.
CLOSE X
Scott McFarlane, Co-Founder and CEO, Avalara
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ADD-ON
Flagship
Fund
ADD-ON
Flagship
Fund
ADD-ON
Endeavor
Fund
platform
Flagship
Fund
Add-on
Foundation
Fund
Monetization
Flagship
Fund
August 2022 Announced Transactions
$2.8BN
Vista recognizes the urgency of the climate crisis and is partnering with our portfolio to reach net zero GHG emissions. In pursuit of that goal, we were pleased to release the Vista Climate Action Report in August. This report shares our portfolio’s baseline GHG emissions analysis for 2019 and the pillars
of our Climate Action Plan. As one of the first North American-based private equity firms to outline our GHG footprint across all majority-owned companies publicly, we’re proud of this progress and our commitment to ESG principles.
Advancing Climate Goals
Today’s dynamic market environment is generating unique challenges and opportunities for enterprise software companies and their investors. Vista’s Founder, Chairman and CEO, Robert F. Smith, joined Co-Heads
of Vista’s Flagship Fund and Senior Managing Directors, Michael Fosnaugh and Monti Saroya, to discuss
the trends shaping the enterprise software landscape and share strategic insights on software investing.
Read 10 key takeaways from their conversation here.
Robert also spoke with Patrick O’Shaughnessy, host
of the Invest Like the Best podcast, to discuss Vista’s approach to partnership and value creation and share his experience founding and leading the firm. The full episode is available here.
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.
Market Leadership
AUGUST REVIEW
Investing in
Enterprise Software
AUGUST Announced Transactions
READ MORE UPDATES
Vista is a leading global investment firm with more than $96 billion in assets under management as of March 31, 2022. 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 intended to provide general information regarding Vista’s investing experience and 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. Such offer or solicitation may only be made to accredited investors and qualified purchasers pursuant to the current offering documents of the relevant Vista Fund. The information provided may not be reproduced or disseminated to any third parties without the written consent of Vista. The past performance of previous Vista Funds and portfolio companies is not necessarily indicative of future results. Investors in Vista Funds may lose investment capital. There can be no assurance that any future Vista Funds or portfolio companies will achieve comparable results. Additional important disclosures can be found here. ©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. 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.
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.
2022 GrowthCap recognition nominees were required to apply for nomination, which included a participation fee.
Please see Disclosures at https://www.vistaequitypartners.com/disclosures/ for further information.
CLOSE X
Vista’s commitment to driving positive social change
is reflected in our recent announcement of an expanded partnership with the National Association of Corporate Directors and the Society for Human Resource Management. Together, we launched a new program focused on increasing candidates from underrepresented backgrounds among compensation and nomination committees of private and public company boards.
We were also proud to announce the expansion of our internship program with KIPP and The Posse Foundation
to include opportunities for rising sophomores from backgrounds not traditionally represented in the asset management industry. The Rising Sophomore program complements Vista’s existing internship programs,
creating a holistic college-to-career pipeline for students.
Expanding Opportunity
At the portfolio level, Pluralsight was named the 2021 Google Cloud Social Impact Partner of the Year for Education. Pluralsight’s recognition is a result of its successful partnership with Google Cloud and Andela, enabling aspiring developers across Africa to skill up through the Google Africa Developer Scholarship program powered by Pluralsight Skills.
Additionally, four Vista investments were named among
the Best Workplaces in the U.S. by Fortune Magazine. Congratulations to Jamf, LogicMonitor, Lucid Software
and Salesloft on this well-deserved recognition.
We were also pleased to see BigTime Software, ComplySci, Critical Start, ESO, Jebbit, LogicMonitor, Salesloft, Securonix TigerConnect, TripleLift and Tripleseat all named to Inc. Magazine's list of the 5000 Most Successful Companies in America. This recognition speaks to the strength of each company's products, culture and leadership.
Advancing Enterprise Software
August was a busy month for Vista’s Flagship Fund, as we announced the take-private acquisition of Avalara (NYSE: AVLR) and the exit of our stake in Ping Identity (NYSE: PING) via their forthcoming acquisition. Avalara has led the transformation of compliance automation worldwide, and Vista is excited to welcome
Co-Founder and CEO, Scott McFarlane, and his team to the Vista Ecosystem.
Vista invested in Ping Identity in June 2016 based on the investment thesis that identities would become
the new cybersecurity perimeter. After three years of partnering on value creation efforts to fortify market leadership and increase customer adoption and operational scale, Ping went public in September 2019
as Vista’s first IPO. We extend our best wishes to the Ping team on their next chapter of growth.
Our Credit strategy also celebrated an announced monetization in August, with eBay entering into a definitive agreement to purchase TCGplayer. This outcome is a testament to the strength of Vista’s FounderDirect channel – a flexible capital solution offered to founders seeking less dilutive terms.
We are pleased to partner with Vista and
will benefit from their expertise in enterprise software as we build and improve upon our cloud compliance platform."
In August, Vista announced several transactions, including our take-private of Avalara,
a deal valued at $8.4 billion, and a take-private for our portfolio company Ping Identity. Meanwhile, we held a Market Insights event to discuss the evolving enterprise software market and announced meaningful updates to our internship and external board programs. Finally, we were pleased to celebrate achievements and milestones from across our portfolio.
Terms not disclosed
monetization
Vista Credit Partners
$8.4bn
Terms not disclosed
Throughout the summer, the Vista ecosystem
has continued to invest, drive value creation initiatives and advance impact goals amid dynamic market conditions. In July, Vista’s portfolio companies announced several add-on acquisitions. Additionally, our Firm and portfolio companies supported Code.org’s advocacy efforts for universal access to computer science education. Finally, several Vista team members and companies were recognized for outstanding
leadership and performance in their fields.
Vista announced five add-on acquisitions
in July. In the Flagship Fund, Advanced invested in Decision Time, a provider of board governance, risk and compliance software
and Pellcomp, a provider of individual learner record management software. In the Foundation Fund, Aptean acquired Produce Pro, a purpose-built solution for the fresh produce and perishables industry, while StarRez added Residential Management Systems, the developer of the Mercury Residential Housing Platform. BigTime,
a company in Vista’s Endeavor Fund,
also completed its acquisition of Projector,
a cloud-based professional services automation platform.
Scott McFarlane, Co-Founder and CEO, Avalara
We are pleased to partner with Vista and will benefit from their expertise in enterprise software as we build and improve upon our cloud compliance platform."
"
$8.4bn
platform
Flagship
Fund
$8.4bn
platform
Flagship
Fund
$2.8BN
MONETIZATION
Flagship
Fund
Terms not disclosed
Add-on
Foundation
Fund
