Billionaire Robert Smith’s Vista Equity Partners is discussing a stake sale to reduce Dyal Capital’s lucrative ownership slice in the buyout shop. Smith has kicked off discussions with executives at Dyal in recent weeks seeking a partial sale of their stake in his firm, according to people with knowledge of the matter. For Dyal, its control in Vista is one of its most valuable investments, with the tech-focused private equity firm’s assets having grown five-fold since its initial purchase in 2015.
Vista could seek to offer the piece to one or more of its existing investors in its funds, the people said, asking not to be identified discussing private conversations.
The talks come as Vista seeks to turn the page on a tumultuous 2020 with its founder Smith admitting to evading taxes and a management shakeup. Dyal, meanwhile, is locked in a tussle with some other investment firms, grappling with the fallout from its December announcement to merge with private-credit power player Owl Rock.
The two sides have not yet formalized an agreement and the buyout firm could also initially elect to repurchase some of the stake from Dyal, one of the people said.
Source: BNN Bloomberg
By Sridhar Natarajan and Sonali Basak
Can't stop reading? This and all news articles are property of their creators, many are not owned or provided by Private Equity Insider. As an event organizer and community platform, we curate content from reliable sources for your suggested reading, and advise you to read the full articles from the referenced authors and sources.