Vista’s micro-cap fund speeds toward final close

Vista Equity introduced the idea for a small-market fund last year and immediately had strong demand from the LP world, sources told Buyouts in past interviews.

That demand has translated in a quick fundraising process. Endeavor Fund, targeting $400 million with a $500 million cap, hit the market around January and may hold a final close near the end of March or early April, according to a person with knowledge of the fund. The fund will hit the cap, the person said.

Endeavor focuses on the same strategy as all Vista’s funds do — enterprise software — just smaller companies.

Endeavor is led by co-heads René Yang and James Zubok. Yang joined Vista in 2007, prior to which she focused on M&A within Yahoo’s corporate-finance group. She also worked at Lehman Brothers’ global technology group.

Yang’s deal highlights include a few of Vista’s top-performing transactions, including recruiting software company Bullhorn Inc., facilities management software provider Accruent and Mitratech, which provides software for legal departments.

Zubok is a principal who started at Vista in 2003 as a senior executive at SER Solutions, a Vista portfolio company. Zubok also was president of Brainware, another Vista portfolio company, before its sale to Lexmark International in 2012.

Also on the Endeavor team are two senior vice presidents: Rachel Arnold, who works with management teams at portfolio companies on operations, and Justin Cho.

Endeavor succeeds the Foundation Fund series, which started small but outgrew the smallest side of the market. Foundation Fund III closed earlier this year on $2.5 billion. The first Foundation Fund closed on $400 million in 2010. That strategy grew quickly, with Fund II closing on $1.1 billion in 2013.

Action Item: Reach Rene Yang +1 512-730-2438

Photo of Rene Yang courtesy of archives