VANCOUVER, BC – Two former UBC classmates are strengthening a business relationship that dates back more than thirty years through a strategic investment involving hundreds of millions of dollars.
Beedie Capital has acquired a 50 per cent ownership interest in Vistara Growth, a technology investment firm founded by Randy Garg, under a partnership aimed at expanding the company’s presence in North American technology markets.
As part of the transaction, Beedie Capital will also become the anchor investor in Vistara’s planned flagship investment vehicle, the Vistara Growth Structured Opportunities Fund. Beedie has committed up to US$125 million toward the fund’s US$500-million target.
The agreement brings together two Vancouver-based investment firms with a shared and storied history.
Beedie and Garg met as MBA classmates at the University of British Columbia in the year 1988 and graduated in 1993. They later co-founded Beedie Capital in 2010 to pursue investments outside the Beedie Group’s traditional real estate business.
Garg left the firm in 2015 to establish Vistara Growth, with Beedie Capital becoming one of its founding limited partners.
Vistara has since raised more than US$700 million through five funds, focusing on flexible growth debt and hybrid equity investments for mid- to late-stage technology companies.
The companies say the new partnership comes as technology companies and investors navigate uncertainty in venture capital and private equity markets, including questions surrounding the potential impact of artificial intelligence on valuations, financing and business models.
“With the current market dislocation for technology financing given the uncertainty around the impact of AI and other market forces, we believe this is an ideal time to launch our new flagship evergreen fund in partnership with Beedie,” Garg said in a statement.
Beedie said the investment reflects the confidence his firm has in Vistara’s management team and investment strategy.
“This investment reflects the confidence we have in Randy and his highly talented team, the track record they’ve delivered, and the market opportunity at hand today,” Beedie said.
The partnership is expected to increase the firms’ capital alignment and operational integration, while both companies will continue to operate as separate corporate entities.
The new fund is intended to provide Vistara with increased capital to pursue investment opportunities in North American technology markets as companies seek alternatives to traditional venture capital and private-equity financing.
For Beedie and Garg, the agreement represents another stage in a business relationship that began when they were university classmates and has continued through varied investment ventures.
