Vistara Growth has completed the final close of its fifth structured capital fund at $321 million, marking a significant milestone in its tenth year of providing flexible financing solutions to technology companies in North America.
The new vehicle represents a significant step up from its prior fund, rising sixty-six percent over Fund IV and elevating total capital raised across all Vistara funds to approximately $700 million from family offices, private foundations, wealth managers, and technology founders.
The close reflects increasing demand for less dilutive capital as growth-stage technology companies seek options that balance expansion objectives with ownership preservation. Many of these firms occupy a middle ground where they lack sufficient access to traditional bank debt yet prefer to avoid the equity dilution that comes with venture rounds. Vistara targets this gap with long-duration term debt, convertible instruments, and structured preferred equity that support both strategic growth and control retention. Its solutions help B2B software and technology-enabled service companies secure capital aligned with expansion plans while maintaining decision-making authority for management teams and existing shareholders.
Fund V has already backed eight companies during its fundraising period, including Clariti Cloud in government technology, Tendo in health care software, Authentic8 in cybersecurity, and Kore.ai in enterprise artificial intelligence. The fund expects to complete fifteen to eighteen investments in total, benefiting from substantial remaining capacity for new high-quality opportunities as technology firms finalize their budgets for 2026 and evaluate capital structures for the years ahead.
Vistara’s disciplined approach has resulted in forty-two investments across its five funds, with twenty-three exits to date and no principal losses.
The firm continues to deploy Fund V and is seeking additional North American technology companies that meet its investment criteria. Founded in 2015, Vistara combines elements of venture capital and private credit, offering hybrid structures that provide downside protection with equity upside potential. The firm has been recognized globally for its performance and ranks number five among private debt fund families according to PitchBook.
KEY QUOTES
“Our experience over the last decade is that high quality technology companies do not always need to price and give away equity every time they raise capital. Growth debt is a sophisticated financing tool for founders and management teams that want to preserve control, and keep their options open for future priced equity rounds. Fund V gives us much greater capacity at an important time in the market, to support flexible use cases such as M&A, extending runway to profitability or exit, or secondary buybacks.”
Randy Garg, Founder and Managing Partner at Vistara Growth
“We continue to see management teams choosing scalable debt financing structures to match their capital deployment plans. Seasoned entrepreneurs and their CFOs view growth debt structures as permanent, strategic capital, not just a tactical tool between equity rounds. We expect this trend to continue as companies finalize their 2026 budgets and for less dilutive forms of capital to take increasing share of overall venture financing in the years to come.”
Noah Shipman, Partner at Vistara Growth
