Robert F. Smith, Founder, Chairman and CEO of Vista Equity Partners - One of the World’s Most Successful Private Equity Firms [REPLAY]

Jul 7, 2022

Robert F. Smith, Founder, Chairman and CEO of Vista Equity Partners, discusses his upbringing, work experience at Bell Labs, and founding Vista Equity Partners. He explains the importance of software and describes today's epoch as the '4th Industrial Revolution'. He explores investment opportunities in the private market and technology sectors, and the role of enterprise software in various industries. He also compares private equity and public equity, and highlights the importance of communication and challenges faced by African-Americans.

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Introduction

00:00 • 4min

Growing up in a segregated community and pursuing the American dream

03:30 • 5min

The Impact of Software on Efficiency and Productivity

08:17 • 17min

Exploring Investment Opportunities in the Private Market and Technology Sectors

25:39 • 3min

Geopolitical Dimension and Interoperability in Enterprise Software

28:42 • 3min

Private Equity vs Public Equity

31:34 • 13min

Communication, Challenges, and Personal Connections

44:28 • 4min

With more than 96 billion dollars in assets under management (as of March 31st 2022), Vista Equity Partners is one of the world’s largest and leading software private equity firms. As Founder, Chairman and CEO, this success has helped Robert F. Smith become one of the most respected investors of his generation, being named by Forbes as one of the ‘100 Greatest Living Business Minds’ as well as one of the most generous philanthropists of his time.

Robert describes his upbringing in Denver, how he secured his first work experience at Bell Labs whilst still at school and his education at Cornell University and Columbia Business School, taking him from engineering to finance. Robert describes working in technology at Goldman Sachs Investment Banking, which included advising a then-troubled Apple as it pivoted to become a platform technology company.

He then explains his decision to leave and found Vista Equity Partners in 2000. He talks about the signs that software’s importance would mushroom and how today, Vista’s 80+ portfolio companies have circa 90,000 employees globally, together comprising one of the world’s largest enterprise software companies when combined by revenue, serving over 300 million users.

Robert goes on to examine why software has been the most productive economic tool in the last 50 years and explains why he describes today’s epoch as the ‘4th Industrial Revolution’. After covering the underlying meaning behind ‘digitization’, he provides examples of how his companies have prospered, why their growth trajectory is still so exciting and why software companies are helping to re-shape supply chains and industries across the world.

He discusses the merits of private equity versus public listings, the huge gains investors have made in their funds, and why he believes the investment opportunities are still so significant.

Robert then talks about his philanthropic work, his view on reaching those communities who have been underserved and what needs to be done and committed to in order to create lasting change for good.

Originally recorded in June 2021, we re-releasing this episode as part of our ongoing Private Equity Miniseries.

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