The head of tech investing at Golden Gate Capital, who recently left, is gearing up to raise the debut fund for his new firm, Lone View Capital, sources told affiliate title Buyouts.
Lone View is the latest in a slew of firms launched by former Golden Gate executives over the past few years. First-time managers in general are finding a receptive environment as LPs look to back executives they’ve gotten to know at bigger shops who decide to break out on their own.
However, as has long been the case, first-time funds are challenging to raise as potential LPs have to gauge the risk of a new enterprise versus keeping capital with established firms.
Rishi Chandna, managing director at Golden Gate who oversaw investments in tech, including enterprise software and tech-enabled services, is launching Lone View to continue his focus on the tech world, sources said. Chandna worked at the firm since 2002, according to his LinkedIn profile.
Chandna did not respond to a LinkedIn connection request as of press time. Sources have talked to Buyouts about Chandna’s plans since last year, as he was expected to leave the firm by year end.
Lone View is expected to target around $500 million, but could try for closer to $1 billion depending on LP reception, two sources told Buyouts. Close to $1 billion would be ambitious for a first-time fund, one of the sources said.
“I have seen crazier things in this market,” the source said.
Another ex-Golden Gate executive, Rajeev Amara, launched Arcline Investment Management in 2018, which closed its first fund on $1.5 billion in 2019. The firm closed its second pool on $2.75 billion last year.
Other recent leavers from Golden Gate include Josh Olshansky, who led the consumer and retail vertical and stepped back from daily activities in recent years; Rob Little, chief operating officer who oversaw financial services investing; and managing directors David Thomas and Jim Rauh, both of whom worked on industrial deals.
Golden Gate moved Matt Crump into leadership of the tech vertical, promoting him to managing director from principal. Dan Haspel, managing director, is leading financial services investments. Managing directors Josh Cohen and Mike Montgomery are leading consumer investments; and Felix Lo, managing director, is leading industrials investments along with managing director Bob Kirby.
Lone View is among a group of new tech firms looking for capital in the market that appears to have a huge reserve of investment opportunities. Another first-timer, Camber Partners, recently closed its debut fund with $100 million for investments in software.
And Tidemark Capital, formed by ex-TCV general partner David Yuan, closed its debut fund on $575 million last year.