iCapital & Alt Goes Mainstream Present: Investing with an Evergreen Lens Ep. 1 – Vista Equity Partners: The Evolving Landscape of Evergreen Funds
Dec 11, 2024
Dan Parant, an industry veteran from Vista Equity Partners, sheds light on the intriguing world of evergreen funds. He discusses the shift towards private equity, explaining how these structures offer stability and compounding benefits. The allure of enterprise software investment is explored, emphasizing its recurring revenues and resilience in today's market. Parant advocates for educating financial advisors about the uniqueness of evergreen investments, making them accessible to a broader audience while highlighting innovations in liquidity options.
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Vista's Enterprise Software Expertise
- Vista Equity Partners has $100 billion in assets and has completed 610 deals focused exclusively on enterprise software.
- They apply 100 proprietary best practices and have 300 professionals dedicated to value creation in software companies.
Enterprise Software Investment Thesis
- Enterprise software is mission-critical with high customer retention and recurring revenue.
- It has low correlation to public markets and is a major beneficiary of generative AI.
Private Market Dominance Shift
- Private companies now dominate the U.S. economy, with 87% of firms over $100 million revenue being private.
- Public markets have fewer but larger companies, driving demand for private equity exposure through evergreen funds.