Successful fundraise, exceeding $1.1 billion target and initial $1.2 billion hard cap, demonstrates confidence in Charlesbank’s lower middle-market technology investing strategy
BOSTON & NEW YORK–(BUSINESS WIRE)–Charlesbank Capital Partners (“Charlesbank”), a middle-market private investment firm, announced today that it has successfully completed fundraising for Charlesbank Technology Opportunities Fund II (“TOF II” or the “Fund”). The Fund closed at its hard cap of $1.275 billion of commitments1 from a diverse set of existing and new limited partners, surpassing its target of $1.1 billion and initial hard cap of $1.2 billion. TOF II is the successor fund to Charlesbank’s inaugural Technology Opportunities vehicle (“TOF I”), which closed in 2020 with total limited partner commitments of approximately $700 million.
TOF I broadened the range of technology transactions Charlesbank pursues, giving it the flexibility to focus on smaller investments in high-growth companies. TOF I is fully invested across 12 platform transactions. TOF II will advance the team’s strategy of investing in lower middle-market technology-focused companies, looking to back innovative companies that have strong leaders, proven business models and predictable financial profiles. TOF II has strong momentum already, having completed four investments and deployed ~20% of total capital commitments.2
Led by Managing Directors Darren Battistoni, Mayur Desai and Hiren Mankodi, the firm’s Technology Opportunities team has more than doubled since the close of TOF I. With 20 dedicated investment professionals and seven seasoned executives acting as industry advisors3, the team focuses on six sub-sectors: application software, cloud computing, cybersecurity, healthcare IT, financial technology, and infrastructure software.
“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 Darren Battistoni, Managing Director at Charlesbank. “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 Hiren Mankodi, Managing Director at Charlesbank. “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.”
TOF II benefited from growing investor desire for exposure to high-growth technology investments in businesses with established products and product-market fit. TOF II’s investor base includes public and corporate pensions, endowments, foundations, financial institutions, fund of funds, asset managers and family offices, as well as high-net-worth individuals.
Over Charlesbank’s 25-year history of investing across diverse sectors, the firm has developed knowledge, connections and company-building resources that help technology companies across the growth spectrum to drive value and reshape their industries.
TOF II, which held its final close on June 18, 2024, has made four investments to date: Maltego, a link analysis software provider used by institutions such as the FBI and INTERPOL; Searchlight Cyber, a dark web intelligence and monitoring platform; Kleer-Membersy, a technology-driven dental membership platform solution; and Quorum Cyber, a managed security detection and response provider.
This press release is not an offer or solicitation of an offer, or an invitation or inducement, to invest in any Charlesbank Capital Partners fund. No person may invest in any Charlesbank fund except in accordance with and subject to the terms of the applicable fund documentation and applicable law.
1 Excludes General Partner and Executive Fund commitments
2 Excludes amounts being syndicated post-closing of a recent transaction
3 Includes five Advisory Directors and two Executive Advisors (all consultants, not employees of the firm)
About Charlesbank Capital Partners
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private investment firm with more than $18 billion of capital raised since inception. Charlesbank focuses on management-led buyouts, growth capital financings, opportunistic credit, and technology investments. The firm seeks to invest in companies with sustainable competitive advantage and excellent prospects for growth. For more information, please visit www.charlesbank.com
Contacts
Contacts for Charlesbank Capital Partners:
Ryan FitzGibbon / Alexa Ottenstein / Peter Gavaris
Prosek Partners
pro-charlesbank@prosek.com
