Private equity firm led by key figure in U.S. tax evasion case makes $300-million investment in Toronto’s Vena Solutions

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Vista Equity Partners is taking a minority stake in a deal valuing 10-year-old Vena Solutions at more than US$600-million

Robert Smith, founder, chairman and CEO of Vista Equity Partners, speaks at the Milken Institute's 21st Global Conference in Beverly Hills, Calif., on May 1, 2018.A U.S. private equity firm led by key figure in a historic U.S. tax evasion case has invested $300-million in Toronto financial planning and analysis software firm Vena Solutions Inc.

Mr. Smith, a former investment banker, admitted Mr. Brockman staked Vista its original US$1-billion in 2000 on condition that he hide fund income generated for Mr. Brockman’s benefit from the U.S. Internal Revenue Service through offshore structures. Mr. Smith used untaxed earnings to pay for his own properties in Sonoma and Switzerland.

Vista has seen high-profile departures since Mr. Smith’s admission, including co-founder and president Brian Sheth and co-leads on two Vista funds including the one that backed Vena. After receiving 13 expressions of interest, Vena signed non-disclosure agreements with nine and narrowed the prospects to three bidders “we thought we were well aligned with,” Mr. Madeley said. “Vista was the right choice at the right time.” He praised Vista for its “significant track record” of creating value over hundreds of investments and “high quality, super effective and highly collaborative” staff. “We feel we’ve got a great partner going forward…I have truly no concerns.

 

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