WEBVTT

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David, welcome.

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It's great to be here.

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What's Vista's view on the
current software market?

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You still seeing opportunities
to invest?

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We are, we've been actually
quite excited and the last 18

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months I would say it was a tale
of two markets.

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At the larger end of the market,
we've seen great opportunities

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in the public market.

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So our flagship fund, the first
five transactions where I'll

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take privates of public
companies.

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So we saw real value.

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We saw the ability to buy some
fantastic companies at what we

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thought were appropriate prices.

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I would say a year ago we were
struggling a little bit in the

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middle market.

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The valuation expectations of
sellers were really disconnected

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from the environment that we're
in.

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But we've really seen that gap
narrow.

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And so I'd say our pipeline on
the private side in the middle

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market and lower middle market
we've really seen start to pick

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up and expand.

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And you know it's a firm we have
funds that really track every

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part of the market.

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So our middle market fund and
our lower middle market fund I

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think are seeing a lot more
opportunities than they were

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seeing 18 months ago where they
thought we could buy really good

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companies at more appropriate
valuations than than what we

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were seeing 18 months ago.

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Within enterprise software, what
developments are you

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particularly keeping your eye on
at the moment?

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So for sure the biggest
development right now is

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generative AI and it's really
going to have effects in

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software across a number of
different dimensions.

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So you know one of the big
impacts is going to be on the

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actual operations of a software
business.

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So how code is written, how
customer service is delivered,

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there's significant
opportunities to really change

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the cost structure of a software
business by the incorporation of

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generative AI.

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But even more than that is
really on the product side.

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Most of our companies are going
to be infusing generative AI

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features into their products,
making them more sticky,

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expanding their total
addressable market, making them

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more valuable to their
customers.

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And so I think it's going to
really over the next three or

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four years you're going to just
see significant changes in how

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people interact with software
based on the enablement of

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generative AI products.

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And we've we've got some
companies doing some really

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exciting things.

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More broadly, how is this
defining success during market

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slowdown?

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Well, you know what's
interesting for us is there's

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obviously been an industry trend
around the need for liquidity

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and and a lot of the private
equity industry, I think last

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year they were down about 44% in
terms of realizations or

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distributions.

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We as a firm we're actually up
48%.

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So we had a very successful last
18 months in terms of exit

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transactions and I think that's
largely attributable to the fact

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that we buy good companies and
help them really be great

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companies.

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And when you build really strong
operationally strong companies,

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lots of people want to buy them.

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And so you know we've had
interesting exits where we sold

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Apptio to IBM in a strategic
transaction. Cvent was taken

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private by Blackstone, so kind
of a sponsor transaction.

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Some of our public companies
we've been you know selling in

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secondary sales.

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So it's really it's been
interesting that we've I think

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last year we generated a little
over 8 1/2 billion of liquidity

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through a whole variety of
different transaction

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structures.

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So.

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So I think, you know, we just
can.

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I think the world, there's no
company that doesn't believe

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they need more digitization,
right?

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Like the world is just becoming
more and more digital.

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Generative AI is obviously an
accelerant of that.

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And so because you know, our
companies fundamentally help

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industries digitize, there's
just lots of strong tailwinds in

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the industry generally.

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David, thank you so much.

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It's great to be here.

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Thank you.