Vista Equity Partners' David Breach - building a software investing powerhouse in the age of AI
Alt Goes Mainstream: The Latest on Alternative Investments, WealthTech, & Private Markets
Importance of operational diligence and alignment
David stresses deep operational due diligence and alignment with founders as critical to investment success.
Welcome back to the Alt Goes Mainstream podcast.
Today’s episode dives into the nuances of enterprise software and how to build a scaled specialist alternative asset manager.
We sat down in Vista’s NYC office with David Breach, Vista’s President and Chief Operating Officer.
David sits on Vista’s Executive Committee, the firm’s governing and decision-making body for matters affecting its overall management and strategic direction as well as the firm’s Private Equity Management and Vista’s Private Equity Funds’ Investment Committees. David is also the Co-CEO of VistaOne, Vista’s evergreen private equity vehicle, and serves on the Investment Committee and Board of Directors. He also sits on the boards of Vista portfolio companies Jamf, Solera, and Stats Perform.
David, who has been instrumental in helping the firm chart its growth path to over $100B in AUM, joined Vista in 2014 after as a career as a Partner at law firm Kirkland & Ellis, where his practice focused on the representation of private equity funds in all aspects of their business. David was a member of K&E’s 15-person global executive management committee and a founding partner of its San Francisco office.
David and I had a fascinating and thought-provoking conversation about private markets and Vista’s evolution as a firm:
- How and why Vista has become a “scaled specialist.”
- The journey from $13B in AUM to $100B.
- The opportunity in enterprise software investing and how enterprise software is an expanding market opportunity.
- The reason why Vista decided to build out a dedicated wealth solutions business.
- How firms can differentiate in the wealth channel.
- How firms can be measured and thoughtful with how they build evergreen solutions.
- The opportunity for large companies to adopt GenAI for cost-savings and revenue generation.
- The skills that might be valuable in the age of AI.
Thanks David for coming on the show to share your wisdom and expertise in private markets.
Show Notes
00:00 Introduction to our Sponsor, Ultimus
01:59 Welcome to the Alt Goes Mainstream Podcast
02:07 Introducing David Breach
03:30 David Breach's Career Journey
05:22 Transition to Vista Equity Partners
06:03 Joining Vista and Initial Impressions
06:30 Vista's Vision and Growth
09:03 Operational Excellence at Vista
10:35 Investment Strategy and Alignment
13:27 Scaling Vista's Operations
16:44 Building Vista's Wealth Business
17:04 Vista's Core Values and DNA
19:29 Strategic Decisions in Wealth Management
20:19 Educating on the Wealth Space
20:46 Modeling and Investment Decisions
21:42 Hiring and Team Building
22:07 Balancing Opportunity and Capacity
22:29 Evaluating Firm's Commitment
23:47 Institutional Investors' Concerns
24:48 Addressing Investor Concerns
25:22 Industry Trends in Private Markets
26:16 The Growth of Private Software Companies
28:46 The Resilience of Software Businesses
29:36 Diversification in Software Investments
30:33 The Role of Generative AI in Software
32:54 Operational Improvements with GenAI
33:32 Product Enhancements with GenAI
33:49 Agentification of Software
34:51 Financial Impact of AI on Software Companies
36:41 GenAI in Middle Market Companies
37:25 Vista's Edge in GenAI
38:27 CEO Perspectives on GenAI
39:04 Encouraging AI Adoption in Companies
42:37 The Human Element in the Age of AI
43:26 Preparing Teams for AI Integration
45:37 Advising Wealth Managers on GenAI
48:26 Vista's Vision for the Future
49:49 Building a Software Investing Factory
50:42 Excitement for the Future
Editing and post-production work for this episode was provided by The Podcast Consultant.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at gharris@ultimusfundsolutions.com.
We thank Ultimus for their support of alts going mainstream.
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