Vistara’s Fund III provides expansion financing to mid-late stage technology companies across North America
Vistara Capital Partners (“Vistara”) has announced the oversubscribed final close of its Vistara Technology Growth Fund III LP, reaching its hard cap of US$115 million (CAD $150 million).
This quickly follows the fund’s second close of US$75 million in July of this year. Vistara has already committed approximately 30 percent of the fund across five companies and will look to invest the balance over the next year. The fund is being deployed into North American, growth-stage technology companies seeking less dilutive financing through flexible growth debt and hybrid debt-equity solutions. Vistara’s investors are mainly comprised of family offices, private foundations, wealth management firms, Export Development Canada (EDC) as its initial institutional investor, and two dozen technology industry executives who believe in Vistara’s unique financing solutions for growth-stage technology companies.
“We surpassed our original US$100 million goal with support from a number of new investors and significantly increased commitments from returning investors based on our track record and a growing channel of investment opportunities,” said Randy Garg, Founder and Managing Partner of Vistara. “We are very grateful for the confidence shown in our ability to create value for our investors and portfolio companies.”
Growth debt and hybrid debt-equity solutions are being increasingly utilized by technology companies looking to accelerate growth. Vistara’s financing is complementary to and often done in partnership with bank lenders and traditional venture capital or growth equity investment Vistara has also found great success working with founder-owned bootstrapped companies, which are mindful of preserving ownership and control as they seek expansion financing or partial liquidity prior to an exit.
“Zafin has enjoyed a great relationship with the team at Vistara, who has consistently supported our goals at different points in our growth cycle including our most recent equity round which Vistara converted into and led.” said Zafin Founder and CEO, Al Karim Somji. “Their patient and creative investment structures have enabled us to fund our accelerated growth path, all while creating the flexibility to raise equity capital at more optimal junctures and limit overall dilution.”
To support the fund and future developments, Vistara will be opening a Toronto office in the new year, with further expansion planned to support its investment activities across North America.
“With our larger fund and expanding team, we can further accelerate the ambitions of a growing set of emerging technology leaders, all while conserving ownership and control for founders and existing investors,” said Noah Shipman, Partner at Vistara.