Crosslake Fuels Growth with Dual PE Backing in Landmark Continuation Fund Deal

CHARLOTTE, N.C. – March 31, 2026 – Technology advisory firm Crosslake has secured a major new investment to accelerate its growth, backed by two powerhouse private equity firms in a deal that highlights a significant strategic shift in the investment world.

In a transaction announced today, Crosslake’s sponsor, Falfurrias Management Partners, initiated a single-asset continuation vehicle to extend its ownership and fuel the company's next expansion phase. The deal is led by a new investor, Leonard Green & Partners' (LGP) Sage Fund, a strategy specifically designed to invest in high-performing companies through such structures.

The move provides liquidity for some of Crosslake's early investors while allowing Falfurrias to remain a significant shareholder, demonstrating strong continued belief in the firm's trajectory. It also injects a substantial, though undisclosed, amount of new capital to fund strategic acquisitions and further platform development.

“We believe this transaction reflects the strength of Crosslake's platform, differentiated value proposition, and exceptional team,” said Barr Blanton, who will now serve as Chairman and CEO of Crosslake. “We are grateful for Falfurrias' continued partnership and support, which has been instrumental in helping us scale, and we are equally excited to welcome Leonard Green's Sage Fund as a new partner as we enter our next phase.”

A New Chapter for a Tech Value Creator

Founded in 2010, Crosslake has carved out a critical niche in the private equity ecosystem. The firm acts as a technology-focused partner for investors, providing data-driven advice across the entire investment lifecycle. Its services range from pre-deal technology diligence to post-acquisition value creation, helping portfolio companies leverage technology for growth and efficiency.

Crosslake's distinct model relies on a “practitioner community” of former Chief Technology Officers, Chief Information Security Officers, and other senior tech executives who bring real-world operational experience to their advisory roles. This expertise is augmented by the firm's proprietary dataset, built from over 6,000 prior private equity transactions, which powers its objective TechIndicators® benchmarks.

Under Falfurrias’ ownership, Crosslake has aggressively expanded its capabilities beyond its diligence roots. The firm has invested heavily in both organic growth and strategic acquisitions to build out its value creation practices. Today, high-demand services—including AI and data strategy, product engineering, cybersecurity, and complex carve-out and integration support—represent approximately half of the company’s work. This evolution has positioned Crosslake as an essential partner in an era where every business is becoming a technology business.

The Rise of the Continuation Fund

The structure of the Crosslake deal is emblematic of a powerful trend reshaping private equity. Faced with a challenging exit market marked by volatile public markets and a slowdown in traditional M&A, private equity firms are increasingly turning to continuation funds to manage their most successful assets. These GP-led secondary transactions allow firms like Falfurrias to offer liquidity to their limited partners (LPs) without having to sell their “crown jewel” investments.

Industry data shows an explosion in this activity. In 2024, GP-led secondary transaction volume surged, with continuation funds accounting for nearly 90% of the total. Single-asset vehicles, like the one used for Crosslake, have become the fastest-growing segment, with the median enterprise value for these deals climbing significantly. The technology sector has been at the forefront of this trend, representing over a third of continuation vehicle transactions last year, as sponsors seek to hold onto high-growth tech assets for longer.

This strategy allows the original sponsor to secure returns for its fund's investors while rolling its own stake into a new vehicle, often alongside new partners, to fund the next stage of growth. “Crosslake's evolution under our ownership has reinforced our conviction in the business and its leadership team,” said Ed McMahan, Managing Partner at Falfurrias Management Partners. “We are excited to continue our partnership with Crosslake.”

The Power of Two: Falfurrias and Leonard Green Join Forces

The transaction brings together two sophisticated investors to guide Crosslake's future. Falfurrias, a Charlotte-based firm founded by former Bank of America executives, has a deep operational focus that has helped steer Crosslake's expansion. Its decision to remain a significant investor is a powerful vote of confidence.

Joining the partnership is Leonard Green & Partners, a leading Los Angeles-based firm with over $75 billion in assets under management. LGP’s investment comes from its Sage Fund, which specializes in backing market-leading companies through continuation vehicles. The fund’s involvement validates Crosslake's position as a top-tier asset in its category.

“We believe that Crosslake represents exactly the type of market-leading, mission-critical asset that the Sage Fund was created to support,” said David Fox and Garrett Hall, Co-Heads of Leonard Green's Sage strategy. “We are excited to partner with Barr and the entire Crosslake team to support the company’s continued growth and long-term success.”

This dual-sponsor backing provides Crosslake with an formidable combination of capital, strategic guidance, and industry relationships. The company's board will be strengthened with the addition of Falfurrias Partner Cam Dyer, a veteran technology investor, while Garrett Hall from LGP will join as a board observer, ensuring close alignment between the management team and its two key financial partners.

Fueling Future Acquisitions and Innovation

With a fortified balance sheet and the backing of two PE giants, Crosslake is poised to accelerate its strategic initiatives. The “meaningful additional capital” raised in the transaction is expected to be deployed to further enhance its service offerings and execute a targeted acquisition strategy. This will likely involve deepening its expertise in high-growth areas like artificial intelligence, data analytics, and cybersecurity to meet the evolving needs of its private equity clients.

This infusion of capital and strategic support will enable Crosslake to compete more aggressively in the crowded technology advisory market, which includes large global consulting firms and other specialized boutiques. The investment allows the firm to scale its unique practitioner-led model, attract more top-tier talent, and potentially expand its geographic footprint.

“Since our initial investment, the Crosslake team has consistently delivered for clients while thoughtfully expanding the platform,” noted Wilson Sullivan, Partner at Falfurrias. “We believe the business is well positioned for continued growth, and that Leonard Green's Sage Fund is the right partner to join forces with Crosslake and Falfurrias in the next chapter of capability and client expansion.”