Charlesbank eyes debut tech fund as firms focus on the sector

Charlesbank Capital Partners plans to launch its first dedicated tech-focused fund, led by two executives it hired in the past year, sources told Buyouts.

The Boston firm is one of several creating new product lines away from their flagship pools. Other firms that have launched tech funds include Apax Partners, which closed its debut tech growth effort on $1 billion in 2017; and Permira, which was targeting $2 billion for its first tech fund.

Charlesbank is considering targeting $600 million for its Technology Opportunities Fund, one of the sources, an LP who has heard the pitch, said.

The fund is not yet out in the market and nothing is finalized, sources said.

Charlesbank’s tech fund will be led by Managing Directors Darren Battistoni and Hiren Mankodi, both of whom co-led the $1 billion tech-focused fund at Pamplona.

Battistoni, who started his investing career at Welsh Carson Anderson & Stowe, joined Charlesbank in December. Mankodi, who spent 12 years at Audax Group, joined in October.

Charlesbank closed its most recent flagship vehicle, Fund IX, on $2.75 billion in 2017.

This is not the first new business line Charlesbank has launched. The firm started a credit business in 2016, for which it brought on Sandor Hau and Matthew Jacobson.

Hau joined from Nomura Securities, where he was head of corporate credit and special situations. Previously, he was at Goldman Sachs. Jacobson previously worked with Hau at Nomura and Goldman.

Charlesbank filed a Form D fundraising document for its Credit Opportunities Fund in 2017. How much that fund has raised is unclear.

Action Item: Check out Charlesbank’s Form ADV here: https://bit.ly/2TodZ7u