Ten years ago, founder and managing partner Randy Garg spun Vancouver investment firm Vistara Growth out of a Beedie family office fund he was running at the time.
The plan was to go after a gap in the private credit market by continuing the strategy he had deployed for Beedie since 2010 as a standalone entity, and Garg brought on Vistara partner Noah Shipman shortly afterwards to support those efforts.
“We set out 10 years ago with a strategy … and we haven’t deviated from that.”
Since 2015, Vistara claims it has raised more than $900 million CAD to date over its five funds, with 40-plus investments, more than 20 successful exits, and zero losses. The firm also says it has delivered a net annualized internal rate of return of 15 percent across its funds along the way.
This 10-year milestone comes as Vistara readies to close its fifth technology-focused private credit fund amid what has become an increasingly hot venture debt market and cool venture capital (VC) fundraising environment. Vistara has already raised over $370 million CAD ($265 million USD) for Fund V on the back of strong support from existing limited partners (LPs).
In an interview with BetaKit, Garg attributed Vistara’s growth and performance during this time to its consistency. “We set out 10 years ago with a strategy … and we haven’t deviated from that,” he said. Garg expects the next decade to bring more of the same for Vistara as it looks to raise larger funds and expand its investor base to include more institutions.
Vistara provides growth capital to mid- and later-stage tech companies across North America, including debt, convertible debt, and structured equity. The private credit investor creates tailored investment structures comprised of debt, equity, or some combination of the two to help finance organic growth, mergers and acquisitions, or shareholder liquidity initiatives.
The firm targets enterprise software companies, including B2B SaaS, FinTech, artificial intelligence, cybersecurity, cloud, IT infrastructure, and healthtech businesses with between $10 million and $100 million CAD in annual recurring revenue. While Vistara typically invests in venture-backed tech companies at the Series B stage and beyond, it also finances businesses that have taken a different path, such as bootstrapped firms.
The firm claims the vast majority of the LPs from Fund IV have returned and collectively contributed even more to its fifth fund. This group includes the Beedie family office, other undisclosed family offices, private foundations, and successful entrepreneurs from fields like tech, real estate, and hospitality.