(Bloomberg) -- Vista Equity Partners has told investors it’s winding down its hedge fund amid a “structural shift” in markets toward private assets.
The buyout firm is sunsetting Vista Public Strategies Fund LP and feeder funds Vista Public Strategies Onshore Fund LP and Vista Public Strategies Offshore Ltd, and returning capital to shareholders, according to a letter to investors reviewed by Bloomberg News.
Vista told investors the market-wide move toward private alternatives has affected the fund’s “opportunity set and ability to generate risk-adjusted returns” at the scale and consistency it targets.
“Most significantly, the center of gravity for technology and software has continued to migrate away from the public markets to the private equity and credit markets,” said the Austin-based firm, which has more than $100 billion in assets under management.
Led by Ashish Shah, Vista Public Strategies was founded in 2014 and, according to a person familiar with the matter, was managing about $550 million when the decision was made to wind down. Through June 30, the fund’s total net return was 12.8% year-to-date and 8.5% annualized since inception, according to the letter.
The firm stopped accepting subscriptions and suspended all pending withdrawal and redemption requests, the letter shows. Vista plans to pay investors at least 90% of their capital in the third quarter of 2024.
Vista is known for its big bets on enterprise software. The firm announced in July the acquisition of a majority stake in hybrid cloud storage provider Nasuni, valued at about $1.2 billion. In June, it disclosed the sale of education software provider PowerSchool Holdings Inc. for $5.6 billion including debt to Bain Capital.
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