Private equity firm Accel-KKR announced recently that it completed fundraising for two funds: Accel-KKR Capital Partners VII LP and Accel-KKR Emerging Buyout Partners II LP – which is closing on $5.3 billion of new capital commitments. The General Partner of Accel-KKR represents the largest investor in both funds.
Accel-KKR is known for investing in technology companies through a series of different funds and strategies including Buyout, Emerging Buyout, Growth Capital, and Credit. And the company now 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 successfully held final closes for four new funds in the last 14 months, representing over $8.4 billion in committed capital.
Accel-KKR Capital Partners VII LP had closed on its hard cap with $4.4 billion of equity capital commitments. And Fund VII includes $300 million from the General Partner and affiliates. The prior Buyout fund, Accel-KKR Capital Partners VI, LP, had closed on $2.85 billion in 2020.
Fund VII is going to continue Accel-KKR’s long-term focused strategy of making majority buyout investments in the 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 had closed on its hard cap with $920 million of equity capital commitments. And Emerging Buyout II includes $72 million from the General Partner and affiliates. The prior Growth Buyout fund, known as Accel-KKR Emerging Buyout Partners, LP, closed on $640 million in 2020.
The new Emerging Buyout fund is going to continue Accel-KKR’s strategy of investing in software and tech-enabled services companies with a special focus on small-cap companies.
Accel-KKR’s investor base includes government employee pension plans, medical research institutes, college endowments, charity foundations, and integrated health delivery networks. And the new funds had strong re-up rates from existing investors and also received support from a range of new investors.
So far, Accel-KKR has invested in or acquired over 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. And 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. Along with buyout capital and minority-growth investments, Accel-KKR is able to provide capital solutions including credit alternatives through other funds that it manages.
The company’s 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
— Salary.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
— Loftware – a global leader in enterprise labeling and artwork management solutions
KEY QUOTES:
“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.”
— Tom Barnds, Co-Managing Partner at Accel-KKR
“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.”
— Rob Palumbo, Co-Managing Partner at Accel-KKR
