- Technology-focused private equity firm Accel-KKR has announced the successful closing of Accel-KKR Emerging Buyout Partners LP with $640 million in committed capital
Technology-focused private equity firm Accel-KKR has 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. And the closing of this new fund brings Accel-KKR’s total assets under management to over $10 billion.
Accel-KKR Emerging Buyout Partners LP Fund had closed at $640 million, comprised of $460 million in limited partner commitments and $180 million in general partner commitments. And 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 is going to mirror 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. And 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. Now 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.
This operating fund will be led by Phil Cunningham. With more than 20 years of experience in software and technology that has spanned from large Fortune 500 organizations to smaller high growth software companies, Cunningham has spent the last 8 years transforming businesses backed by private equity investors. And prior to Accel-KKR, Cunningham was the CEO of Advicent Solutions, a provider of SaaS technology solutions for the financial services industry.
There are 3 platform companies that comprise the initial cohort of the Emerging Buyout Partners fund:
1.) Blue Mountain Quality Resources — Enterprise Asset Management solutions specifically for life sciences companies to track equipment assets at multiple sites with many users
2.) Cloud9 Software — Cloud-based practice management and clinical care software for orthodontic and pediatric dentistry practices
3.) InSight Mobile Data & Rhino Fleeting Tracking — A merger of two complementary businesses that provide fleet management software solutions for the SMB field services industry
The closing of Accel-KKR Emerging Buyout Partners LP comes amid an active fundraising period for the firm. And 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 being founded 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. And Accel-KKR has invested in more than 250 companies in its 20-year history.
KEY QUOTES:
“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.”
— Tom Barnds, Managing Partner of Accel-KKR
“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.”
— Rob Palumbo, Managing Partner of Accel-KKR
