Menlo Park, CA, March 30, 2023 – Accel-KKR, a technology-focused private equity firm, today announced the completion of fundraising for two funds – Accel-KKR Capital Partners VII LP and Accel-KKR Emerging Buyout Partners II LP – closing on $5.3 billion of new capital commitments. The General Partner of Accel-KKR represents the largest investor in both funds.
Accel-KKR invests in technology companies through a series of different funds and strategies including Buyout, Emerging Buyout, Growth Capital and Credit, and today has $19 billion in cumulative capital commitments. Combined with the recent fundraises for Accel-KKR Growth Capital IV, LP and Accel-KKR Capital Partners CV IV, LP, Accel-KKR has successfully held final closes for four new funds in the last 14 months, representing more than $8.4 billion in committed capital.
Accel-KKR Capital Partners VII LP (“Fund VII”)
Accel-KKR Capital Partners VII LP closed on its hard cap with $4.4 billion of equity capital commitments. Fund VII includes $300 million from the General Partner and affiliates. The prior Buyout fund, Accel-KKR Capital Partners VI, LP, closed on $2.85 billion in 2020.
Fund VII will continue Accel-KKR’s long-term focused strategy of making majority buyout investments in lower-middle market and middle-market software and IT-enabled services companies well-positioned for top-line and bottom-line growth.
Accel-KKR Emerging Buyout Partners II, LP (“Emerging Buyout II”)
Accel-KKR Emerging Buyout Partners II, LP closed on its hard cap with $920 million of equity capital commitments. Emerging Buyout II includes $72 million from the General Partner and affiliates. The prior Growth Buyout fund, Accel-KKR Emerging Buyout Partners, LP, closed on $640 million in 2020.
The new Emerging Buyout fund 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.
Tom Barnds, Co-Managing Partner at Accel-KKR, said, “In raising these two new funds, we will continue our long-term strategy of working in partnership with management teams of the companies in which we invest, aggressively supporting their growth objectives by providing capital and operational support to fuel accelerated organic and inorganic growth.”
Rob Palumbo, Co-Managing Partner at Accel-KKR, said, “We are heartened by the strong support we received from existing and new investors for Fund VII and Emerging Buyout Partners II, fundraising for both of which started after Labor Day 2022. We also are quite pleased to be able to continue supporting the social missions and great causes represented by our limited partners.”
Accel-KKR’s investor base includes government employee pension plans, leading medical research institutes, college endowments, charitable foundations, and integrated health delivery networks. The new funds had strong re-up rates from existing investors and also received support from a range of new investors.
Accel-KKR has invested in or acquired more than 350 technology companies over more than two decades, making it one of the most active private equity firms in the software and tech-enabled services sector. These transactions have included acquisitions and recapitalizations of founder-owned or closely-held private companies; buyouts of divisions, subsidiaries and business units from private and public companies; and going-private transactions of public companies. In addition to buyout capital and minority-growth investments, Accel-KKR is able to provide capital solutions including credit alternatives through other funds that it manages.
The close of Fund VII and Emerging Buyout II comes amidst a period of significant activity for Accel-KKR in terms of new investments, add-on acquisitions by portfolio companies and realizations of investments. Recent new platform investments include:
- Humanforce, an Australia-based workforce management software;
- Basware, a Norway-based global accounts payable and invoice automation software platform, in a take-private transaction;
- com, a US-based pioneer in compensation data and analytics;
- PayProp, a UK-based processor of rental payments for the property management industry;
- Yes Energy, a US-based provider of North American power market data and software solutions;
- Pegaso Tecnologia, a Mexico-based digital compliance and e-invoicing software company;
- StoreForce, a US-based retail execution and workforce management solution for specialty retailers; and,
- Loftware, a global leader in enterprise labeling and artwork management solutions.
Accel-KKR’s portfolio companies also have been very active, completing 42 follow-on acquisitions since the beginning of 2022.
Accel-KKR is a technology-focused investment firm with $19 billion in cumulative capital commitments. The firm focuses on software and tech-enabled businesses well-positioned for top- 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 various transaction types, including private company recapitalizations, divisional carve-outs and going-private transactions Accel-KKR is headquartered in Menlo Park with additional offices in Atlanta, London and Mexico City. Visit accel-kkr.com to learn more.