Growth-stage investor Vistara Growth has closed its fifth private credit fund at $321 million USD ($450 million CAD), marking a 66% increase over its previous fund and reaffirming its position as one of Canada’s leading providers of flexible growth capital for tech companies.
The fund’s close follows an almost two-year fundraising process that fell slightly short of Vistara Growth’s initial $386 million USD ($540 million CAD) target—an “ambitious goal,” according to founder and managing partner Randy Garg. Despite that, the firm says it is “very happy with where we ended up,” noting that nearly all limited partners (LPs) from Fund IV returned and increased their commitments.
“This is friend-raising to the max,” Garg said. “We’re proud to have the continued trust of our LPs—many of them entrepreneurs, family offices, and long-term partners who’ve grown with us. It’s a strong signal of confidence in our model and results.”
Strong track record drives investor confidence
Founded in 2015, Vistara Growth provides tailored debt and hybrid financing to mid- and later-stage private tech companies across North America, including both venture-backed and bootstrapped firms. Its flexible structures—ranging from growth loans to convertible debt—enable founders to fund expansion, acquisitions, or shareholder liquidity without significant equity dilution.
To date, the firm has completed 42 investments, with 23 successful exits and no losses, delivering a net annualized IRR of over 15%. Portfolio companies include Brim Financial, D3 Security, and Sama, while notable exits include Alida, Mobify, Reach, and Zafin.
Last year, Preqin ranked Vistara Growth’s second and third funds among the top 10 global performers in their category. The firm also reported that 88% of Fund IV’s capital has already been returned to investors and that it has distributed over $230 million USD across 12 exits since mid-2022—despite a broader venture market slowdown.
“Investors are focused on tangible outcomes—cash returned and realized performance,” said Partner Noah Shipman. “Our consistency and results helped us stand out even in a tough fundraising environment.”
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Fund V: fueling non-dilutive growth capital
With Fund V, Vistara Growth has now raised more than $700 million USD ($980 million CAD) across five vehicles. The new fund will continue targeting mid- to late-stage tech companies with $10–100 million CAD in annual recurring revenue (ARR), primarily in FinTech, AI, and HealthTech.
The capital will support 15–18 portfolio companies, typically split 70% in the US and 30% in Canada. So far, eight investments have been completed, including:
- Clariti Cloud (govtech, Vancouver)
- DataCore (software, Florida)
- Matic (insurtech, Ohio)
- Tendo (healthtech, Philadelphia)
“This isn’t short-term bridge financing,” Garg explained. “It’s a three-to-five-year solution—many founders call it rental equity. It gives them growth capital and strategic flexibility without giving up control.”
Looking ahead: institutional ambitions
While Vistara’s LP base remains primarily composed of non-institutional investors—family offices, private foundations, and entrepreneurs—Garg said the firm plans to attract institutional partners for its next fund.
“We’re running out of friends,” Garg joked. “But Fund VI will be bigger, and by 2026, we expect to bring institutional LPs into the mix while maintaining the same disciplined, partnership-driven model.”
With Fund V now closed, Vistara Growth is doubling down on its mission: to empower North American tech founders with flexible, non-dilutive capital that supports growth, ownership, and long-term value creation.
