Vistara Capital Partners launched its third fund, the Vistara Technology Growth Fund III LP, with a goal to raise $100 million.
Vistara (Sanskrit for “expansion”) provides capital in the form of highly flexible debt financing for tech companies — an increasingly popular financing method to fuel growth without giving up further control, resetting valuation or diluting founders’ and existing shareholders’ equity stakes.
“There is a rapidly increasing number of mid to later stage tech companies looking for additional forms of capital to fuel growth beyond traditional sources,” said Randy Garg, Vistara founder and managing partner. “Since inception, Vistara has worked with both founder-owned and venture-backed tech companies across North America to help them achieve their growth objectives. With this fund, we are aiming to further grow our capabilities to support the next wave of technology industry leaders.”
Vistara Technology Growth Fund III LP will invest between $5 million and $15 million per company in senior or subordinated debt, leveraging well-established relationships with bank lenders and equity funds across Canada and the U.S. Additional co-investment capacity comes through Vistara’s strong network of LPs, which include a number of prominent family offices, foundations and over two dozen current or former technology company executives.
Vistara Technology Growth Fund III LP springboards off the success of past funds which have seen a number of successful exits, zero loan losses and strong consistent returns for investors. The core investment team at Vistara have dedicated their careers to financing technology companies, including a prior family office fund managed by Garg specializing in the same investment strategy.
Vistara will also be opening a new Toronto office. “We would love to place at least half of the new $100 million fund in Canada to help mid to later stage Canadian tech companies further scale and become true champions as opposed to stalling out or selling too early,” said Garg.
Headquartered in Vancouver, Vistara Capital Partners provides highly flexible and tailored debt financing for technology companies across North America.
