(Bloomberg) -- Vista Equity Partners is planning to sell bonds backed by stakes in its private capital funds, according to people familiar with the matter.
While the firm has not yet finalized how much it plans to raise via the collateralized fund obligation or CFO, the transaction could be around $1 billion, the people said, asking not to be identified discussing a private matter.
Representatives for Vista and
Customized securitizations are becoming popular as private fund managers look for ways to raise cash while weathering a slump in dealmaking. Star Mountain Capital, Carlyle AlpInvest, GCM Grosvenor and Dawson Partners are among funds that have marketed CFOs this year.
Vista, a private equity firm with more than $100 billion in assets under management, has been coordinating and underwriting debt deals for companies it owns, allowing it to collect additional fees even as the market for mergers and acquisitions remains muted.
Insurers have become big buyers of CFOs recently because these structures offer them exposure to private funds at lower capital charges than if they were to buy shares of the funds directly.
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