Charlesbank Capital Partners has closed Charlesbank Technology Opportunities Fund II LP (TOF II) above its hard cap with $1.275 billion of commitments. The new fund had an original target of $1.1 billion and an original hard cap of $1.2 billion.
Limited partners in TOF II include public and corporate pensions, endowments, foundations, financial institutions, fund of funds, asset managers and family offices, as well as high-net-worth individuals.
TOF II invests in lower middle-market technology-focused companies that have enterprise valuations from $50 million to $300 million. Sectors of specific interest include application software, cloud computing, cybersecurity, healthcare IT, financial technology, and infrastructure software.
TOF II follows Charlesbank’s inaugural technology opportunities fund (TOF I) which closed in 2020 with $700 million of capital and is now invested across 12 platforms.
TOF II has already invested 20% of its capital in four investments: Maltego, a link analysis software provider used by institutions such as the FBI and INTERPOL (April 2023); Searchlight Cyber, a dark web intelligence and monitoring platform (January 2024); Kleer-Membersy, a technology-driven dental membership platform (May 2024); and Quorum Cyber, a managed security detection and response provider (June 2024).
Charlesbank’s technology opportunities strategy is led by managing directors Darren Battistoni, Mayur Desai and Hiren Mankodi.
“In the past few years, we’ve been able to execute on our differentiated investment strategy due to the hyper-specialization of our investment team, as well as the deep partnerships we form with our portfolio companies to drive value,” said Mr. Battistoni. “Our disciplined, collaborative approach leaves us well-positioned for long-term success as we aim to make a meaningful impact on the businesses and management teams we partner with.”
“The accelerating pace of technological innovation is continuing to reshape all industries, and with valuations resetting to more reasonable levels, the opportunity set for investing in technology and software businesses has never been greater,” said Mr. Mankodi. “With our debut fund, we leveraged the Charlesbank platform and our team’s deep sector expertise to offer investors access to high-growth technology companies with proven business models, and the success of the TOF II fundraise demonstrates that this approach has resonated.”
Charlesbank’s technology opportunities group has offices in New York and Boston.
© 2024 Private Equity Professional | June 25, 2024