American private equity firm Vista Equity Partners has raised $850 million for a second fund to invest in early-stage software companies, media reports said. The company has completed fundraising for Vista Equity Endeavor Fund II which is a private equity general partner firm headquartered in Austin. Vista’s first Endeavour Fund was raised $560 million in 2017.
The company aims to partner with founders of well-established enterprise software businesses with annual recurring revenue between $10 million and $30 million, the newswire said. Based on Gartner’s research, global revenue from software-as-a-service companies is expected to reach $94.8 billion in 2019 and increase to $143.7 billion by 2022. Vista’s first Endeavor fund has managed to invest two-thirds of its capital across seven investments.
In May, Black Mountain was acquired by Vista to boost the software company’s growth in domestic and global markets. “We are thrilled to become a part of the Vista family and look forward to the myriad of ways that their investment will help us grow our company, better serve our customers, and expand our team,” said Black Mountain founder and co-CEO Kevin MacDonald. “We look forward to working with them as we enter this next chapter.” The investment will help in Black Mountain’s tailored solutions for data aggregation, process management, and business reporting.
Established in 2000, the company has offices in Austin, Texas, Chicago, Illinois, and San Francisco. Vista is one of the world’s largest investors in enterprise software companies with more than $46 billion in capital. Vista owns more than 50 software companies and has 65,000 employees making it the fourth largest enterprise software company in the world.