Cloud Software Group, the owner of Citrix and Tibco, is the result of a $16.5 billion leveraged buyout, one of the largest in 2022. Vista bought Tibco in 2014 and merged it with Citrix in a 2022 deal.
According to sources, Cloud Software will move into the continuation fund at a 5% discount to its valuation in the first quarter of 2024 – a relevant benchmark when Vista began exploring such a move.
The popularity of continuation funds has skyrocketed among private equity firms looking for alternative ways to return money to investors. The lack of initial public offerings and asset sales has forced private equity investors to seek a return on their money.
Investors in Vista's fifth buyout fund, which originally owned Cloud Software, would have received a 4.1x return on invested capital if they had chosen to cash out rather than move to the continuation fund, according to a letter sent to interested parties.
Vista Equity was founded in 2000 by Robert F. Smith and manages assets worth over $100 billion.
Source: Bloomberg
