Vista backs billable hours; Seawall Capital heads outdoors; and software is everywhere

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The Wire

Jan. 20, 2022

Vista backs billable hours; Seawall Capital heads outdoors; and software is everywhere

Good morning, Hubsters. MK Flynn here with today’s Wire.

“Software is eating the world,” entrepreneur and venture capitalist Marc Andreessen said more than 10 years ago. “My own theory is that we are in the middle of a dramatic and broad technological and economic shift in which software companies are poised to take over large swathes of the economy.” Andreessen’s words continue to resonate, and I was reminded of them yesterday, as I watched a stellar panel of investment bankers hosted by Randy Schwimmer, co-head of senior lending at Churchill Asset Management and founder and publisher of The Lead Left. Among the topics discussed was the permeation of technology into all sectors these days. As Pam Hendrickson, vice-chairman of The Riverside Company, told me in a recent interview, “Anything that involves digitization, or a disruptive technology is interesting.”

Billable hours. Vista Equity Partners announced this morning that it has made a $100 million strategic growth investment in BigTime Software, a provider of cloud-based software that tracks billable time for small and medium-sized professional services firms, including accounting, engineering, architecture and IT services.

The Great Outdoors. As covid continues to push people out of crowded indoor venues and into the great outdoors, Seawall Capital is doubling down on outdoor activities. PE Hub’s Aaron Weitzman spoke with Matt Eby, founder of Seawall Capital and chairman of the board of Kent Outdoors, about the strategy.

Deal of the Year: Get your nominations in now for your best exits (either full or majority) that closed in 2021. Awards are given in seven categories: overall deal of the year, large-cap, middle-market, small-cap, international, turnaround and secondaries. Deadline is Friday, Feb. 11. Send to Chris Witkowsky, private equity editor, at cwitkowsky@buyoutsinsider.com. Go here for all the rules and regs!

In case you missed it. Check out PE Hub’s Q&A series with high-profile private equity pros, including: Pam Hendrickson, vice chairman of The Riverside Company, who was recently elected chair of the American Investment Council; Trevor Clark, founder and managing partner of Twin Brook Capital Partners; David Grain, founder and CEO of Grain Management; and Beatrice Mitchell, co-founder and managing director of Sperry, Mitchell & Co.

Until tomorrow, MK

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Also of note (may require subscriptions)

Welcome to the metaverse. When Microsoft disclosed plans to buy videogame giant Activision Blizzard, the software giant described the $75 billion deal as a pathway to the metaverse, tapping into a trendy topic. During a roughly 15-minute investor and media call shortly after the Tuesday announcement, executives from the two companies mentioned the term “metaverse” more than 10 times. (Wall Street Journal)

Cryptocurrency. Andreessen Horowitz plans to raise up to $4.5bn for a new set of cryptocurrency funds, aiming to more than double the amount it raised less than one year ago in a sign of the growing frenzy surrounding digital assets. The Silicon Valley-based venture capital firm told investors last week it planned to raise up to $3.5bn for its latest cryptocurrency venture fund and up to $1bn for a separate fund focused on seed investments in digital asset start-ups, people briefed on the discussions told the Financial Times.

Single-family rentals. Real estate tech investor Fifth Wall has named Sarah Liu partner, one of nine promotions the firm announced. Among the investments Liu has worked on is Lessen, a maker of property services management systems. Single-family rentals (SFRs) are hot, Liu told Venture Capital Journal.