Menlo Park, CA, March 31, 2014 – Accel‐KKR, a technology‐focused private equity investment firm with over $2.5 billion under management, today announced the completion of fundraising for Accel‐KKR Structured Capital Partners II with $325 million in committed capital, exceeding its target. The new fund continues the predecessor fund’s focus on making minority equity investments in growing technology companies via senior equity and other structured securities. Accel‐KKR raised its first Structured Capital Fund, with $180 million in capital commitments, in 2011. The firm also is investing out of its fourth buyout fund, Accel‐KKR Capital Partners IV, a fund with over $800 million in capital commitments that was raised in 2012.
Accel‐KKR, founded in 2000, invests in middle market software and technology enabled service companies with revenues greater than $10 million. The firm invests in both majority ownership situations via its buyout funds, and minority equity positions through its Structured Capital funds. In recent years, the firm has expanded its geographic focus with investments in companies in Australia, England, Northern Ireland, Scotland and the Netherlands. Accel‐KKR opened a London office in August 2013.
Accel‐KKR Structured Capital Partners II received strong support from existing limited partners and also attracted numerous first‐time investors. Commenting on the fund closing, Rob Palumbo, Managing Director of Accel‐KKR, said, “We are heartened by the support we received from our existing investors, which provided for an expedited fundraising process, allowing the firm to continue its focus on identifying and working closely with great businesses that need capital to continue their growth.”
Tom Barnds, Managing Director of Accel‐KKR, said, “The idea behind our Structured Capital funds developed over the years as we saw so many good businesses with great management teams where minority stakes ‐‐ as opposed to majority investments ‐‐ made sense. We thank our investors for their continued support.”
“While Accel‐KKR invests in a wide variety of situations from our Structured Capital funds, we have found a particularly attractive niche in working with closely‐held, owner‐operated businesses that need capital for growth,” said Greg Williams, Managing Director at Accel‐KKR who focuses on structured capital opportunities for the firm.
The partners and employees of Accel‐KKR are committing 7% of the capital to Accel‐KKR Structured Capital Partners II, making the firm one of the largest investors in the fund. “We believe in strong alignment of incentives with our investors, and a very significant financial commitment from the firm to the fund is one of the many ways we seek to build and demonstrate that alignment,” said Tom Barnds and Rob Palumbo.
The firm began raising Accel‐KKR Structured Capital Partners II in early 2014 with a $250 million target. The firm has had two liquidity events from its first Structured Capital fund, including the sale of N‐able Technologies to SolarWinds (NYSE: SWI) for $127 million in May 2013.
Accel‐KKR is a technology‐focused private equity firm with over $2.5 billion in assets under management. The firm invests primarily in software and IT‐enabled businesses well positioned for top‐line and bottom‐line growth. At the core of Accel‐KKR’s investment strategy is a commitment to 2 developing strong partnerships with the management teams of its portfolio companies and a focus on building value through significant resources available through the Accel‐KKR network. Accel‐KKR focuses on middle market companies and provides a broad range of capital solutions from minority growth investments to buyouts, recapitalizations, divisional carveouts and going‐private transactions. The firm is headquartered in Menlo Park and has offices in Atlanta and London.