The Financial Times (FT) has reported that Singapore’s sovereign wealth fund, GIC, has parted ways with Vista Equity Partners, selling its stake following a significant tax scandal involving the buyout firm’s founder, Robert Smith.
GIC, a global heavyweight among investors, decided to dispose of its approximately US$300 million stake in Vista at a discount, consequently incurring a loss on its investment.
This move is seen as particularly unusual, as stakes in buyout funds are infrequently sold for reputational reasons.
The backdrop to this decision is the $140 million settlement in 2020 that Robert Smith, the billionaire founder of Vista, made with US authorities.
Smith and investor Robert T. Brockman were implicated in a tax evasion case. Smith entered into a non-prosecution agreement with the IRS, agreeing to pay US$139 million and to testify against Brockman.
The following month, Vista’s president and co-founder, Brian Sheth, left the company. He maintained that his departure was unrelated to the tax situation.
Similarly, the UK’s Wellcome Trust, a leading charitable donor and institutional investor, also withdrew its investment from Vista’s funds.
In September 2019, Vista Equity Partners raised US$16 billion for their flagship fund, which stood as the largest technology-focused fund ever amassed by an independent private equity firm at that time.
In a recent letter to stakeholders, Smith expressed confidence, indicating that their new fund aims to exceed the amount raised previously.
When approached for comments by FT, all parties – GIC, Vista, and Wellcome Trust – declined to comment.
Tan See Leng: Co-investing CPF in GIC risks interest rate fluctuations
Netizens support gov’t decision to bring Taylor Swift to S’pore in exclusive concert deal
Former Transport Minister S. Iswaran granted extension on overseas trip amid corruption charges
Singapore to increase retirement age to 64 and re-employment age to 69 by 2026
CCE lesson on Gaza conflict to be customized for varied age groups, says Chan Chun Sing
Taylor Swift’s grandmother revealed to have S’porean connections
Singapore increases minimum salary for Employment Pass to S$5,600 and S$6,200 for financial sector
Pritam Singh clashes with SPS Chua on insinuations over NCMP Leong’s POFMA-ed post
Edwin Tong: Govt “moved fast and early” to secure Taylor Swift show in Singapore, declines to reveal amount spent
Spanish vloggers robbed, sexually assaulted by seven men in India sparks outrage
Temasek-backed Eat Just pauses cultivated meat production in Singapore amid challenges
Singapore’s mainstream media remains mum on Li Shengwu securing tenure at Harvard
Singapore1 week ago
Gilbert Goh challenges MOE on Israel-Hamas classroom narrative
Politics1 week ago
Leong Mun Wai steps down as PSP Secretary-General over POFMA directive received
Opinion2 days ago
Why isn’t Minister Edwin Tong issuing POFMA Correction Direction against the Thai PM or Bangkok Post?
Singapore1 week ago
MOE responds to critiques on Israel-Hamas conflict education
Singapore3 days ago
Minister Edwin Tong refutes high spending claims on Taylor Swift’s Singapore concerts
Politics2 weeks ago
SDP Chief Chee Soon Juan receives POFMA order for comments on HDB policies
Comments2 weeks ago
Netizens amused by ‘washrooms basic cleaning’ course on SkillsFuture
Comments3 days ago
Netizens flood LHY’s Facebook with congrats as Li Shengwu secures tenure at Harvard