Vista Closes Book on First Fund With Sale of Library Software Maker

Monday, 12 January 2015
Source: 
The Wall Street Journal
http://blogs.wsj.com/privateequity/2015/01/12/vista-closes-book-on-first-fund-with-sale-of-library-software-maker/

Vista Equity Partners has closed the book on its first buyout fund.

The firm’s sale of technology services company SirsiDynix to ICV Partners, announced last week, was the final exit for Vista’s debut buyout vehicle, which closed nearly a decade and a half ago.

SirsiDynix provides libraries with systems that help them operate. Based in Lehi, Utah, the company serves more than 23,000 libraries in the Americas, Europe, Africa, the Middle East and Asia-Pacific.

With the sale of SirsiDynix, Vista Equity Partners Fund II LP, which closed in 2000, provided a more than three-times cash-on-cash return to investors, said a person with knowledge of the situation. The vehicle delivered a 29.2% net internal rate of return and 2.73-times net multiple on invested capital, the person said. As of Dec. 30, 2013, themedian net IRR for buyout funds that year was around 15%, according to data from Preqin (private equity return data often has a long lag time).

Although a news release said Vista would continue to hold a stake in SirsiDynix, the person with knowledge of the deal said Vista rolled over the capital for the remaining stake into another fund.

In the fourth quarter of last year, Vista returned $805 million to its limited partners, which represents a 3.1-times total gross multiple on invested capital, based on the deals realized during that period. The firm deployed $2.3 billion in equity from all of its funds in the fourth quarter.

The Austin, Texas, firm closed its fifth fund on $5.78 billion in commitments in October after telling investors earlier in the year it was targeting $3.5 billion for Vista Equity Partners Fund V LP. The firm raised $6.8 billion in total equity, including commitments to Fund V, during 2014, the person said.

Technology and software firms have raked in commitments for new funds in recent years. Francisco Partners increased its hard cap for Francisco Partners IV LP to about $2.8 billion from $2.5 billion, LBO Wire reported earlier this week. Thoma Bravo, meanwhile, took less than six months to collect $3.65 billion for its latest tech-focused fund, surpassing its $2.5 billion target.

Write to Lillian at Lillian.Rizzo@wsj.com. Follow her on Twitter at @Lilliannnn.