Robert Smith’s Vista Equity expands into artificial intelligence with more than $20 billion in funding

Vista Equity Partners recently accomplished financing by raising more than $20 billion for its eighth flagship fund.

Founded by billionaire Robert Smith, the fund builds on a capital campaign to boost more than an initial $17 billion – the corporate’s largest so far. In his letter to investors, Smith touches on Vista’s vision of reaching recent heights in the world of artificial intelligence. The company hopes to extend the worth of artificial intelligence as a key element of the underwriting process. “You’ll also hear more about how we’ve embraced generative AI not just as a tool, but as a key element of our value creation and underwriting processes,” Smith wrote.

“This has enabled us to identify and leverage opportunities, including radical TAM development, product innovation and GTM strategies, with greater precision and speed, keeping us one step ahead of the competition in a rapidly changing market landscape.”

On April 17, the corporate hosted its annual general meeting, where partners participated in an on-stage conversation between Smith and OpenAI CEO Sam Altman. Vista joins the discussion on the necessity to secure a considerable amount of capital to maximise the event of artificial intelligence capabilities.

In September 2023, Smith wrote one other letter to have a good time the 18 monetization events that kicked off his fundraising season in November 2021, including the sale to IBM of the $4.6 billion Apptio platform, which the corporate acquired in 2019 for $1.9 billion. The company’s software helps customers understand and manage technology expenses. The lucrative deals made Vista’s sixth fund “the only buyout fund raised in excess of $10 billion since 2016,” with a 100% return on commitments and more than double its Net TVPI.

Vista recently signed one other deal, acquiring the Model N, a provider of revenue optimization and compliance in the sector of pharmaceutical and medical technology, . In an all-cash transaction valued at roughly $1.25 billion, the corporate will acquire all outstanding shares of Model N common stock at a price of $30 per share. The addition of the Model N to the corporate’s already impressive portfolio marks Vista’s fifth acquisition since late 2022.

Vista acquired Avalara for $8.4 billion, KnowBe4 for $4.6 billion, and Duck Creek Technologies and EngageSmart for a complete of $6.6 billion. The transaction is predicted to shut in mid-2024, after which it should undergo a review of customary conditions, including shareholder approval.