Thread by @steveressler

I'm often asked about my experience as a CXO at a Vista Equity-backed company. Lots of mystery around their unique playbook, large AUM ($75B AUM) and charismatic (and controversial) founder Robert F. Smith. Here's my 5 lessons from my time at Vista on why they win 🧵⬇️

0 - Andreesen says "Software is eating the world." Robert Smith says "All software tastes like chicken. They’re selling different products, but 80% of what they do is pretty much the same." And that's how they approach the world.

1 - System over Individuals. I always say Vista is the "Alabama" football of PE. They have a clear system of how to play the game and it's system over individuals. Less of a focus on the star players and catering to them.

2 - There's little debate over the plays. Too often in companies there's debate on X vs Y (on which IT software to use, how to measure X) that just wastes time. Vista says this is the way we measure across all companies. No debate.

3 - They have a style. On the investment side, it is well-known that most of their investors wear 3-piece suits emulating the founder Robert F. Smith. When they roll in, you know who is coming and it's time for business. It's pro ball.

4 - Connecting the Peers. Vista spends a lot of time and money getting together the execs (and upper-middle) of Vista companies. This is especially helpful since everyone is running the same plays (#2). You have "seniors" teaching the "freshman" tips on running the plays.

5 - Clear goal. Alabama has a clear goal - national title. Vista like most PE has a clear target - 3X cash on cash returns - in a clear time hold time. All parties know what they are running at.

WSJ has the best article I've seen on Vista = wsj.com/articles/billi…

P.S. That's not to say everything is perfect at Vista or with Robert Smith. Plenty of those articles online & on Glassdoor. But you don't get to their scale, their IRR, & evolution (from lower-middle market software to take private buyouts) without doing something right.

P.P.S. Want to learn more? Give me a follow or sign-up for my newsletter on SMB, software, entrepreneurship through acquisition - bit.ly/etamusings