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First-timer Crosspoint Capital bucks pandemic markets, eyes hard cap

Crosspoint is one of a group of first-time funds braving the pandemic-battered markets that have led LPs to mostly stick with their established GPs.

Crosspoint Capital Partners, formed by veteran tech CEO Greg Clark, is heading for a final close on its hard cap of $1.2 billion, according to people with knowledge of the firm.

Crosspoint is one of a group of first-time funds braving the pandemic-battered markets that have led LPs to mostly stick with their established GPs. Another high-profile first-timer in the market is Patient Square Capital, led by ex-KKR healthcare chief Jim Montazee, who could raise up to $3 billion for his debut pool.

Crosspoint, based in Menlo Park and Boston, was targeting $1 billion with a $1.2 billion hard cap. The firm was expected to raise around $400 million through October, 2020, Buyouts previously reported. The firm managed around $957.4 million as of Feb. 26, 2021, according to Crosspoint Capital’s Form ADV.

The fund is expected to hold a final close toward the end of March, the people said. Park Hill Group is working as placement agent on the fundraising.

Crosspoint invests in North American companies focused on cybersecurity, data privacy and infrastructure software, according to the firm’s Form ADV. “It’s a big space and topical right now,” one of the people said about Crosspoint’s tech strategy. It’s also heavily operations focused, reflecting some of the senior managers’ backgrounds.

The firm was a minority investor alongside Advent International in its acquisition of Forescout Technologies last year.

Clark is the former CEO of two private equity-backed tech companies, Symantec Corp and Blue Coat Systems. He formed Crosspoint along with managing partners Steve Luczo, chairman of Seagate Technology; Matt MacKenzie, senior vice president, chief of staff at Symantec; and Hugh Thompson, chief technology officer of Symantec.

Last year, the firm hired Ian Loring as a managing partner from Bain Capital, where he worked for 20 years. Loring co-led the firm’s technology investing activity for the North American private equity business from 2010 to 2020, according to Crosspoint’s website.

Principal owners of Crosspoint Management Co. are Clark, MacKenzie, Luczo and Loring, the Form ADV said.

No one from Crosspoint returned a comment request Tuesday.