Eterna Completes Spinout of Technology Strategy from Charlesbank

Eterna Growth Partners has completed its spinout from Charlesbank Capital Partners, formally separating the firm’s technology opportunities strategy team and funds into an independent private equity firm. The closing of the spinout follows a yearlong, collaborative separation process.

Boston-headquartered Eterna Growth Partners makes control investments in technology and technology-enabled businesses with enterprise values between $50 million and $400 million. Sectors of specific interest include application software, cloud computing, cybersecurity, financial technology, healthcare IT, and infrastructure software.

Eterna is led by Darren Battistoni and Hiren Mankodi, alongside Mayur Desai, Bhuvan Jain, Dhruva Kaul, and Michael Zirngibl. These six managing directors have worked together for nearly a decade and are all members of the investment team. In addition, eight operating professionals transitioned to Eterna as part of the spinout.

“Spinning out as an independent firm is a natural next step in the evolution of our platform,” said Mr. Battistoni, managing director of Eterna. “Our team has built a differentiated technology investment strategy grounded in deep sector expertise, thematic sourcing and operational partnership.”

Eterna will continue to manage its two existing Technology Opportunities Funds (TOF), which closed in 2020 with $700 million in capital and in 2024 with $1.3 billion in capital. TOF II still has uninvested capital and continues to actively pursue new investments. The two TOF funds have invested in 19 companies across application software, cloud computing, cybersecurity, financial technology, healthcare IT, and infrastructure software.

“We are incredibly proud of the work our teams accomplished together in building the Technology Opportunities strategy and its first two funds, which laid a strong foundation for Eterna,” said Michael Choe, chief executive officer at Charlesbank. “This milestone reflects a well-considered step, shaped through our close collaboration over the past year. We look forward to maintaining our relationship as the Eterna team enters its next chapter, while Charlesbank continues to invest with conviction across our Technology and Technology Infrastructure vertical.”

“Operating independently allows us to bring even greater clarity and focus to that mission while remaining a trusted, long-term partner to the companies we support,” said Mr. Mankodi, managing director of Eterna.

Sidley Austin was the legal advisor to Eterna, and Paul, Weiss, Rifkind, Wharton & Garrison advised Charlesbank Capital Partners.