🎥 Vista's David Breach - building a software investing powerhouse in the age of AI

Welcome back to the Alt Goes Mainstream podcast.Today’s episode dives into the nuances of enterprise software and how to build a scaled specialist alternative asset manager.We sat down in Vista’s NYC office with David Breach, Vista’s President and Chief Operating Officer.David sits on Vista’s Executive Committee, the firm’s governing and decision-making body for matters affecting its overall management and strategic direction as well as the firm’s Private Equity Management and Vista’s Private Equity Funds’ Investment Committees. David is also the Co-CEO of VistaOne, Vista’s evergreen private equity vehicle, and serves on the Investment Committee and Board of Directors. He also sits on the boards of Vista portfolio companies Jamf, Solera, and Stats Perform.David, who has been instrumental in helping the firm chart its growth path to over $100B in AUM, joined Vista in 2014 after as a career as a Partner at law firm Kirkland & Ellis, where his practice focused on the representation of private equity funds in all aspects of their business. David was a member of K&E’s 15-person global executive management committee and a founding partner of its San Francisco office.David and I had a fascinating and thought-provoking conversation about private markets and Vista’s evolution as a firm: * How and why Vista has become a “scaled specialist.”* The journey from $13B in AUM to $100B.* The opportunity in enterprise software investing and how enterprise software is an expanding market opportunity.* The reason why Vista decided to build out a dedicated wealth solutions business.* How firms can differentiate in the wealth channel.* How firms can be measured and thoughtful with how they build evergreen solutions.* The opportunity for large companies to adopt GenAI for cost-savings and revenue generation.* The skills that might be valuable in the age of AI.Thanks David for coming on the show to share your wisdom and expertise in private markets.Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.A word from AGM podcast sponsor, Ultimus Fund SolutionsThis episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected] thank Ultimus for their support of alts going mainstream.Show Notes00:00 Introduction to our Sponsor, Ultimus01:59 Welcome to the Alt Goes Mainstream Podcast02:07 Guest Introduction: David Breach03:01 David Breach’s Career Journey03:52 Transition to Vista Equity Partners04:13 Early Career and Legal Background06:18 Joining Vista and Initial Impressions06:43 Vista’s Vision and Growth Strategy09:35 Operational Excellence at Vista11:53 Investment Process and Alignment14:31 Scaling Vista’s Operations18:16 Building Vista’s Wealth Business18:34 Vista’s Core Values and Culture19:33 Strategic Decisions in Wealth Management21:11 Challenges and Opportunities in Wealth Channel24:29 Balancing Institutional and Wealth Investors24:56 Transparency and Investor Relations26:25 Institutional Concerns and Strategy27:34 Investors Voting with Their Feet27:38 Private Companies Staying Private Longer28:10 Liquidity Mechanisms in Private Markets28:35 Growth of the Software Industry29:22 Penetration of Alternatives in Wealth Space29:48 Belief in Private Markets30:27 Expanding Exposure to Private Markets31:11 Enterprise Software in Investment Portfolios31:39 Resilience of Software Businesses32:31 Diversification in Software Investments33:37 AI Revolution in Enterprise Software36:10 Operational Improvements with GenAI36:52 Product Enhancements with GenAI38:06 Revenue Opportunities with GenAI38:20 Cost Savings vs. Revenue Generation40:20 Middle Market Opportunities with GenAI41:08 Vista’s Edge in GenAI Expertise42:57 Encouraging AI Adoption46:17 Skills for the AI AgeEditing and post-production work for this episode was provided by The Podcast Consultant. Join over 14,100 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit altgoesmainstream.substack.com