AUSTIN, Texas--(BUSINESS WIRE)--Vista Equity Partners, (“Vista” or the “Firm”), a leading global investment firm focused exclusively on enterprise software, data and technology-enabled businesses, today reinforced its commitment to the recently formed Economic Opportunity Coalition (EOC) as one of its founding members. In coordination with the White House National Economic Council, the Department of the Treasury, the Consumer Financial Protection Bureau, the Freedman’s Bank Forum and other industry stakeholders, Vista will continue its efforts to address economic disparities and accelerate economic opportunity in communities of color and other underserved communities.
As part of the Economic Opportunity Coalition, Vista is committing to shift approximately 2% of the Firm’s cash balance to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs). Vista’s deposits, and those of other participating institutions, will allow MDIs and CDFI banks to leverage that capital to provide more loans to the low-to-moderate income communities they serve. Together, EOC members have committed to shifting $1 billion in capital to MDIs to increase access to affordable capital in communities of color.
Vista will also participate in the Coalition’s planning process to create a Community Equity Development Bank, which will offer a range of financial and technical services to expand the reach and capacity of CDFIs and MDIs. The EOC will also offer aid by matching CDFIs and MDIs to Coalition members that can offer in-kind professional resources and technical support to help scale their operations.
This partnership builds on Vista’s leadership in strengthening the financial architecture of Black communities. This includes Vista’s work with its portfolio company Finastra to modernize over 400 CDFIs and MDIs so that PPP loans could more effectively be distributed during the COVID-19 pandemic. Through a partnership with the Kellogg Foundation, Vista and Finastra have also identified funding opportunities to modernize nearly a dozen CDFIs across southern communities.
“In order for our minority communities to continue growing, they need financial institutions where they live that are well-positioned to provide equitable access to capital,” said Robert F. Smith, Founder, Chairman and CEO of Vista Equity Partners. “People of color continue to face numerous barriers to accessing these essential financial resources. Through programs such as the Economic Opportunity Coalition and the Southern Communities Initiative, another organization we are proud to co-lead, Vista will continue working to create on-ramps to opportunity for communities that have historically been excluded from these opportunities.”
Announced in July 2022, the EOC coordinates across organizations to develop and deploy new solutions that address known challenges of financial inclusion. Founding EOC member companies include Ariel Investments, Bank of America, BNY Mellon, Capital One, Citi, Discover, Ford Foundation, Goldman Sachs, Google, Intercontinental Exchange, KeyBank, Kresge Foundation, Mastercard, McDonald’s, McKinsey & Company, Micron, Momentus Capital, Moody’s, Netflix, Next Street, PayPal, PNC, The Rockefeller Foundation, Starbucks, TIAA, Upstart, Vista Equity Partners, and Wells Fargo.
About Vista Equity Partners
Vista is a leading global investment firm with $94 billion in assets under management as of June 30, 2022. The firm exclusively invests in enterprise software, data and technology-enabled organizations across private equity, permanent capital, credit and public equity strategies, bringing an approach that prioritizes creating enduring market value for the benefit of its global ecosystem of investors, companies, customers and employees. Vista's investments are anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions and proven, flexible management techniques that drive sustainable growth. Vista believes the transformative power of technology is the key to an even better future – a healthier planet, a smarter economy, a diverse and inclusive community and a broader path to prosperity. Further information is available at vistaequitypartners.com. Follow Vista on LinkedIn, @Vista Equity Partners, and on Twitter, @Vista_Equity.
About the Southern Communities Initiative
The Southern Communities Initiative (SCI) was launched in April 2021 by Vista Equity Partners, Boston Consulting Group, and PayPal, to accelerate the deployment of corporate resources into the six southern communities that are home to more than 50% of all African Americans: Atlanta, Birmingham, Charlotte, Houston, Memphis, and New Orleans. SCI is an open-source blueprint for advancing racial equity that compiles ideas from local organizations that are embedded within their communities, which are then refined by leading national experts on banking, broadband, education, and other pressing needs. These ideas are then presented as available actions that corporations can take to address inequities, in ways that are locally sustainable and can quickly generate impact across traditional siloes.
