Public-Focused Groups of Private Tech Investors (Vista Public Strategies, Sequoia Global Equities, etc.)
Hi all,
Is anyone familiar with Vista Public Strategies or Sequoia Global Equities and their investment style (time horizon, concentration, mandate etc.)? Specifically interested in understanding how they complement the well-known private investment practices within each respective firm.
Bumping this
SCGE operates independently of the private side. So there is no crossover or synergies. Don't know about Vista's HF.
There are many strong, well-established PE shops that have a public arm. I would bifurcate the public programs of PE shops into two buckets: complementary/focused public programs with a long only investment strategy and then business diversification / asset gathering of mega firms. I can speak broadly about the industry, but not entirely sure which are truly tech-only focused.
I would put the Sequoia/Vista programs into the first bucket. I also know of Berkshire / Stockbridge, Advent/Sunley House that fall into this category, though their industry coverage generally mirrors the focus in their private funds. Blum Capital sewed the seeds for what became valueact too.
In the second bucket I would include Bain/Bain Public Equities (fka Brookside), TPG/TPG public equity partners, and I am sure there are many others. However these funds employ a long/short strategy and are less concentrated.
I think that the initial pitch when their public programs were launched was that each of these PE houses have deep sector expertise and they shouldn't limit their investing to privates if they see attractive opportunities on the public side. Moreover the deal flow they see on one side may inform their investment activities on the other side.
For the firms in the first bucket, many of their funds tend to resemble their private funds: concentrated with long term holds. The public portfolios will have 10-20 high conviction investments that are held for 3-10 years. Some of the investments may be former private investments that they still like but had a fund exit through IPO and they maintain ownership through the public vehicle rather than selling between funds.
I don't know anything about Sequoia but met with ppl on the Vista Public Strategies team before they launched. This was several years ago and I don't remember too much but I believe they planned to leverage the resources of the rest of the firm, such as vista consulting, when engaging with public companies. I believe they were contemplating a concentrated long only portfolio. I think the portfolio managers came from outside of vista.
This is an older but super helpful comment. Could you speak more about Blum Capital to ValueAct? Just seems like an interesting story.
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