On Tuesday, private equity investment firm Crosspoint Capital Partners, which has offices in Menlo Park, CA and Boston, MA, announced the successful close of its inaugural fund, Fund I, focused on the cybersecurity, privacy and infrastructure software sectors. Fund I closed at $1.3 billion, well exceeding its $1 billion target and making it one of the largest first-time, technology-focused private equity funds ever raised.
“Private equity is an exceedingly competitive industry and simply having capital is no longer a source of differentiation,” said Crosspoint Managing Partner Greg Clark. “We are pursuing a new and differentiated model for private equity investing that combines deep sector knowledge, operational capabilities and investment expertise to build better businesses. Our unique skillsets give us deep insights into what we are buying, help us identify opportunities to create value and partner with management teams to accelerate the innovation, growth and profitability of our investments.”
Freshman fund
“We are thrilled with the support we received from the LP community, especially against the backdrop of the global COVID-19 pandemic, which has depressed fundraising for many first-time private equity funds,” said Ian Loring, Managing Partner of Crosspoint. “Our Fund I limited partners include some of the most respected investors in the private equity industry, which speaks both to their conviction in our mission-driven focus to help build great businesses and to the incredible team we have assembled.”
“Crosspoint’s strategy of combining investors, operators and sector experts among the leadership of the firm and investing in a concentrated portfolio within a large and growing sector of the broader technology market has been well received by the investor community,” said Sean Keene, Partner at PJT Park Hill. “We are increasingly seeing investors seek differentiated returns through sector-focused private equity firms like Crosspoint.”
Crosspoint expects to have a concentrated portfolio of investments in Fund I given the firm’s focus on operations and value creation post-investment. Crosspoint has already made a significant investment in Forescout Technologies, Inc., a cybersecurity company focused on providing an active defense for the enterprise of things.
Crosspoint intends to focus on several transaction archetypes in Fund I, including control buyouts, minority growth equity investments, corporate carve-outs and structured investment opportunities.
