Vista Equity Partners has closed a $5.6bn continuation fund to extend its ownership of Cloud Software Group, the parent of Citrix and Tibco. The deal marks one of the largest single-asset continuation transactions to date.

The continuation vehicle attracted $2.7bn in fresh capital from secondary investors, alongside $2.2bn in commitments from Vista’s existing Fund VII and Fund VIII. The remaining interest was rolled over from Fund V, which previously held the asset. Investors in Fund V who opted for liquidity received a 4.1x return.

Cloud Software Group was formed in 2022 through Vista’s $16.5bn buyout of Citrix and Tibco. The asset will now move into the continuation fund at a 5% discount to its Q1 2024 valuation.

Coller Capital is among the new backers of the vehicle, although the firm has not publicly commented on its participation.

The deal underscores the growing use of continuation funds as an alternative to traditional exits amid a muted M&A and IPO environment. Sponsor-led secondaries are projected to surpass $75bn in 2025, up from $25bn in Q1 alone, according to PJT Partners.

Source: Bloomberg

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