Charlesbank wraps up second credit fund on more than $700m, HKW hires another tech executive as it builds out team, New Mountain nears target amid succession

HKW expands its tech team with a new senior hire while New Mountain Capital raises most of the target for its sixth fund.

Happy Wednesday, Tech Take Readers!

I hope you enjoyed your holiday weekend and had a wonderful Fourth of July! As an immigrant, Independence Day remains one of my favorite holidays. Despite the many controversies we see today, for me, this country gave me and many others a chance to pursue our dreams. And that’s one reason to be thankful.

Tech After Covid
Over the past few weeks, I’ve been talking to tech investors about opportunities they see in the post-covid world.

A lot of the talk is around the acceleration of existing trends: cloud adoption, DevOps, workflow automation software, EdTech, security, digital payments and many other strategies. Such areas were already seeing private capital inflows before the pandemic.

That said, tech investors today appear to be much more certain about their preferred business model: Subscription-based businesses with highly recurring revenues and software businesses that are core to companies’ existence, investors told me.

“Coming out of this [pandemic], people will put more focus on quality,” one tech-focused GP told me.

Another investor, at a tech-focused growth equity firm, also sees new opportunities.

Europe and the U.K. have more successfully curbed the spread of the pandemic versus the US, creating more M&A activity across the pond, the investor said. “That’s helpful from our perspective because we are a global firm and we have an ability to invest across different geographies and be flexible,” he said.

Stay tuned for more on this topic in my upcoming deep dive.

HKW’s Tech Push
Last week I shared news of HKW’s new push into tech investing, spearheaded by Jeff Bistrong, a former founder of the technology M&A advisory unit at Harris Williams.

This week, the firm is adding another senior member to its technology roster.

Daniel Kim joins HKW as a partner from Bregal Sagemount, where he was a co-founder and a former investing partner. He previously worked at JMI Equity and at Goldman Sachs’ Americas Special Situations Group.

HKW is now on the hunt for an operating partner to join the senior team, two vice presidents or post-MBA hires, as well as several pre-MBA associates.

Unlike more traditional private equity funds that favor control buyouts, HKW plans to differentiate by being flexible and invest in all capital structures, Kim told PE Hub.

“My goal is to work creatively with owners and operators to finance their growth,” Kim said. “To do that, we are seeking to basically invest in really all flexible capital structures, including control buyouts, minority growth equity and structured capital via a pool of flexible capital.”

Read my full story here.

Top Scoops
Clayton Dubilier & Rice named Orla Beggs as partner, human capital, responsible for leading human resources at CD&R. She will work on people and organizational-related initiatives aligned with value creation at portfolio companies. Beggs is a former partner and head of the US People and Organization practice at PwC.

Beggs has advised CD&R and other firms on deals in the U.S. and Europe over the past 16 years. She also has worked as a member of CD&R’s HR Council, a best practice forum for portfolio company HR leaders. Read more here.

New Mountain Capital raised most of the target for its sixth fund as the firm wrapped up a succession that included a cut in CEO Steve Klinsky’s ownership stake, writes Kirk Falconer today. The firm put the final touches on the succession, which reduces Klinsky’s 100 percent stake to a two-thirds share. The one-third interest relinquished by Klinsky is now held by Blackstone and managing directors. Read more here.

Have a great day! Reach me with your thoughts, tips, gossip, whatever at mvinn@buyoutsinsider.com.