Vista Equity Seeks $500 Million for Second Foundation Fund

Vista Equity Partners is out raising its second Foundation Fund, according to an SEC filing and a placement source.

Vista Foundation Fund II LP has a $500 million target, the source says. The first Foundation Fund, which invests in small-cap software companies, collected $400 million in 2010.

Vista Foundation Fund 1 is generating a 17.4% net IRR, according to Sept. 30 data from CalPERS.

Last year, Vista closed its fourth flagship fund at $3.5 billion. Vista Equity Partners Fund IV LLC exceeded the pool’s target of $2.5 billion.

The firm’s third flagship fund, Vista Equity Partners III, raised $1.3 billion in 2008. That pool is generating an IRR of 29.3%, CalPERS data says.

Robert Smith, Vista’s chairman and CEO, co-founded the private equity firm in 2000 along with Brian Sheth, who is president. Vista, which has offices in San Francisco, Austin and Chicago, invests in software and technology-enabled companies.

Vista Foundation Fund I made several acquisitions, including MicroEdge in October 2009; Mitratech in October 2011; accruent in December 2009; Bullhorn in June 2012; and, Lanyon in December 2012.

Officials for Vista did not return calls for comment.

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