91原创's Vistara Growth has closed a US$150-million investment in its new Vistara Technology Growth Fund V LP, the firm announced this morning (Dec. 13).
Its aim is to raise a further US$250 million and to spend the eventual US$400 million in 18 to 24 companies across North America with each getting between US$10 million and US$30 million, managing partner Randy Garg told BIV.
Garg founded Vistara in 2015 and the firm has since raised more than US$500 million, including the US$150 million announced this morning.
Primarily the investors are non-institutional entities, such as family offices, entrepreneurs and private foundations that are largely based in B.C. It now seeks to broaden its investor base by targeting pension funds and other institutional investors. It also plans to branch out geographically by having vehicles for both U.S. and international investors.
Vistara's four previous funds involved 34 investments, 15 exits and no losses, according to the company. These investments produced an internal rate of return of around 17 per cent on a net annualized basis, according to Vistara.
"There's been a handful in B.C. but we don't necessarily target BC." Garg said. "We have many investments across Canada."
B.C. investments have included Zafin, Alida, Mobify, D3 Security and Nettwerk Music, Garg said.
"Our investors clearly recognize the growing market opportunity for our differentiated investing strategy of providing flexible growth capital to technology companies, and the proven track record of delivering strong realized returns across each of our prior funds” he said.
Vistara launched the technology fund this fall so it has taken about four weeks between the fund's launch and the US$150 million capital raise.
Garg said that he sees the fund as helping fill the space between bank lenders and venture-capital funds.
