Accel-KKR Announces Close of $640 Million Emerging Buyout Partners LP Fund Focused on Small-Cap Software Companies

Accel-KKR | Oct 29, 2020

Oversubscribed New Fund Closes at Hard Cap

Since Beginning of 2019, Accel-KKR Has Closed on Over $5.8 Billion in Capital Commitments across Five Funds, Bringing Total Assets under Management to Over $10 Billion

Menlo Park, CA – October 29, 2020 – Accel-KKR, a technology-focused private equity firm, today announced the successful closing of Accel-KKR Emerging Buyout Partners LP with $640 million in committed capital. The oversubscribed fund, which closed at its hard cap, will continue Accel-KKR’s long-standing strategy of investing in software and tech-enabled services companies, with a special focus on small-cap companies. The closing of this new fund brings Accel-KKR’s total assets under management to over $10 billion.

Commenting on the fund closing, Tom Barnds, Managing Partner of Accel-KKR, said, “We are excited to welcome a number of new investors to Accel-KKR through this new fund, as well as extend and expand our relationship with many of our long-standing limited partners. We are proud to have such a great group of mission-driven LPs representing leading academic institutions, medical research foundations, health care institutions, and corporate and government pensions.”

Commenting on the fundraising process, Rob Palumbo, Managing Partner of Accel-KKR, said, “Despite the less-than-ideal conditions imposed by the pandemic, we completed a very efficient, successful fundraise almost completely during the lockdown. We now look forward to putting this capital to work and leveraging our software investing experience to help the next cohort of software companies and founders succeed.”

Accel-KKR Emerging Buyout Partners LP Fund closed at $640 million, comprised of $460 million in limited partner commitments and $180 million in general partner commitments. The fund received strong support from Accel-KKR investors in prior funds as well as attracted a number of new investors.

Accel-KKR Emerging Buyout Partners LP mirrors Accel-KKR’s core strategy of investing in and growing mission-critical software and tech-enabled service companies led by strong management teams through a mix of inorganic and organic strategies. The Emerging Buyout Partners fund is designed with an evergreen structure, providing the fund with more flexibility to drive optimal capital allocation decisions that generate healthy long-term returns. Accel-KKR is well-positioned to bring the firm’s global reach, broad networks, operational capabilities, proven reputation and patient capital to a traditionally underserved market.

The operating fund will be led by Phil Cunningham. With over 20 years of experience in software and technology that has spanned from large Fortune 500 organizations to smaller high growth software companies, Mr. Cunningham has spent the last eight years transforming businesses backed by private equity investors. Prior to Accel-KKR, Phil was the Chief Executive Officer of Advicent Solutions, a provider of SaaS technology solutions for the financial services industry.

Three platform companies currently comprise the initial cohort of the Emerging Buyout Partners fund:

  • Blue Mountain Quality Resources: Enterprise Asset Management solutions specifically for life sciences companies to track equipment assets at multiple sites with many users
  • Cloud9 Software: cloud-based practice management and clinical care software for orthodontic and pediatric dentistry practices
  • InSight Mobile Data & Rhino Fleeting Tracking: a merger of two complementary businesses that provide fleet management software solutions for the SMB field services industry

This closing of Accel-KKR Emerging Buyout Partners LP comes amid an active fundraising period for the firm. Since the beginning of 2019, Accel-KKR has held final closes on over $5.8 billion in capital commitments including its most recent flagship buyout fund (Accel-KKR Capital Partners VI) and growth capital fund (Accel-KKR Growth Capital Partners III), its inaugural credit fund (Accel-KKR Credit Partners), and a continuation vehicle for its third buyout fund (Accel-KKR Capital Partners CV III).

Since its founding in 2000, Accel-KKR has built a track record in investing and growing software and tech-enabled services companies across its buyout, growth capital and credit funds, providing for flexibility depending on the needs of portfolio companies. Accel-KKR has invested in more than 250 companies in its 20-year history.

About Accel-KKR:
Accel-KKR is a technology-focused investment firm with over $10 billion in capital commitments. The firm focuses on software and IT-enabled businesses, well-positioned for topline and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value alongside management by leveraging the significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions including buyout capital, minority-growth investments, and credit alternatives. Accel-KKR also invests across a wide range of transaction types including private company recapitalizations, divisional carve-outs and going-private transactions. In 2019 and 2020, Inc. named Accel-KKR to the ‘2020 PE 50 – The Best Private Equity Firms for Entrepreneurs’, its annual list of founder-friendly private equity firms. Accel-KKR is headquartered in Menlo Park with additional offices in Atlanta and London.