Lone View Capital, launched in early 2022 by former Golden Gate Capital executives, secured $466 million for a debut technology buyout offering.
The amount, disclosed this month in Form D documents, represents just over half of Lone View Capital Fund I’s expected $925 million target, reported last year by Buyouts.
Lone View will continue raising capital, sources told Buyouts. The firm declined to comment.
Unveiled last year, Fund I is being raised in an especially brutal market for emerging managers. Private Equity International’s LP Perspectives 2023 Study found 26 percent of investors are less likely to commit capital to first-time funds this year, up from 15 percent in 2022.
If Lone View is overcoming this challenge, it may be because of the pedigrees of its three founders. They include managing partner Rishi Chandna, ex-head of technology investing at Golden Gate, and partner Doug Ceto, an ex-managing director at Golden Gate who worked alongside Chandna.
Chandna, with Golden Gate for almost two decades, previously worked at Bain & Company, while Ceto was earlier a senior associate at Welsh, Carson, Anderson & Stowe, according to their LinkedIn profiles.
The third founder, Lone View’s ADV filings say, is senior operating partner Jim Schaper. Schaper was formerly chairman and CEO of IT automation company Ivanti, backed by Clearlake Capital Group, TA Associates and Charlesbank Capital Partners.
Other members of Lone View’s team include principals Thomas King and Tyler Shean, both of whom worked under Chandna in Golden Gate’s technology practice.
Lone View’s strategy leverages the domain experience of Chandna, Ceto and Schaper. It is designed to make control and co-control investments in growth-oriented businesses across enterprise software, information services and technology-enabled services sectors.
Target companies are mid-sized, ADV filings say, with established products and economic models, “yet that still have room for transformation and the potential to become more scalable and strategic platforms.” Other details of the strategy were not disclosed.
Some hints are suggested in two recent deals. Lone View’s first investment, announced in January, was Trend Health Partners, a healthcare-focused credit balance management and payment accuracy solutions provider.
Later in the year, the firm acquired a majority stake in Smartlinx, a workforce management solutions provider to the healthcare industry.
Lone View is among a group of emerging managers Buyouts has been tracking as they navigate today’s tough fundraising market. Check out our extensive database and news archive for more information.