Vista Equity Partners has told investors that it has decided to wind down its hedge fund and related feeder funds due to a significant “structural shift” in markets favouring private assets, according to a report by Bloomberg.
The report cites an investor letter as confirming that the firm will close Vista Public Strategies Fund, along with feeder funds Vista Public Strategies Onshore Fund and Vista Public Strategies Offshore, and return capital to shareholders.
In the letter, Vista wrote that the widespread shift towards private alternatives has impacted the fund’s “opportunity set and ability to generate risk-adjusted returns” at the desired scale and consistency. The firm highlighted that the “centre of gravity” for technology and software has moved increasingly from public markets to private equity and credit markets.
Led by Ashish Shah, Vista Public Strategies was founded in 2014 and managed approximately $550m at the time of the decision to wind down. As of 30 June, the fund had a total net return of 12.8% year-to-date and an annualised return of 8.5% since inception.
The firm has ceased accepting new subscriptions and has suspended all pending withdrawal and redemption requests. Vista plans to return at least 90% of investors’ capital by Q3 2024.
