– Vistara Growth (“Vistara”) has closed its fifth structured-capital fund at US$321 million (C$450 million), marking 10 years of providing flexible growth financing to technology companies across North America.
– Fund V represents a 66% increase from Fund IV, reflecting strong investor confidence and the growing appeal of less dilutive capital for growth-stage tech firms.
– Across all funds, Vistara has raised about $700 million from family offices, private foundations, wealth management firms, and technology entrepreneurs.
– Vistara targets the financing gap between traditional bank debt and venture equity.
– The firm offers long-duration term debt, convertible debt, and structured preferred equity solutions.
– It partners primarily with B2B software and tech-enabled service companies seeking capital aligned with growth goals.
– Vistara’s funding allows companies to expand while preserving ownership and control for founders and existing shareholders.
– Founder and Managing Partner Randy Garg emphasized that high-quality tech firms don’t always need to give up equity when raising capital.
– Growth debt serves as a sophisticated tool for management teams wanting to retain control and flexibility for future equity rounds.
– Fund V expands Vistara’s capacity to support M&A, profitability runway extensions, exits, and secondary buybacks.
– The fund has already made 8 investments, including in Clariti Cloud (govtech), Tendo (healthcare software), Authentic8 (cybersecurity), and Kore.ai (enterprise AI).
– Fund V aims to complete 15–18 total investments with room for additional high-quality opportunities.
– Partner Noah Shipman noted that experienced entrepreneurs increasingly view growth debt as permanent, strategic capital rather than a bridge between equity rounds.
– This trend is expected to continue as companies plan 2026 budgets and seek less dilutive financing options.
– Across its five funds, Vistara has completed 42 investments and 23 exits — with zero losses to date.
– This track record underscores disciplined risk management and strong alignment with investors and portfolio companies.
– Vistara continues to deploy Fund V and is actively seeking new tech investments across North America.
