Accel-KKR has closed its third fund with $600 million in capital commitments. The firm focuses on growth opportunities in the technology mid-market.
Accel-KKR, a technology-focused private equity investment firm, today announced the final closing of its third private equity fund, Accel-KKR Capital Partners III, LP (“AKKR III”) at $600 million. The growth-oriented middle-market technology fund, which initially targeted $450 million, was significantly oversubscribed and reached its hard cap after a limited marketing process, which did not involve use of a placement agent. The final closing of AKKR III brings Accel-KKR’s total assets under management to over $1 billion.
The new fund’s investors include college and university endowments, corporate pension plans, foundations, insurance companies, investment advisors, state and government retirement systems and family offices. All of Accel-KKR’s investors from its second fund, raised in 2006, committed to the firm’s third fund.
Tom Barnds, Managing Director of AKKR said, “Our successful fundraising, accomplished in a challenging market environment , is a validation of the strong results we have delivered to our investors over the years. We are very pleased with both the support we have received from our existing investors, as well as the caliber of the new investors who have committed to AKKR III. We look forward to continuing to deliver very attractive returns to our investors through the development of highly productive partnerships with great management teams in the mid-market technology space.”
AKKR III will continue to focus on Accel-KKR’s ongoing successful strategy of partnering with talented management teams to acquire and invest in mid-market companies across multiple segments of the technology industry, including software, internet technologies and IT enabled services. Accel-KKR focuses on closely held private technology companies, such as family owned companies, divisional buyouts or spin-outs, and going private transactions. The firm’s third fund will target platform technology companies with revenues between $15 million and $150 million, differentiated products, competitive positioning, and a demonstrated track record of growth and cash flows.
Ben Bisconti, Managing Director of Accel-KKR, said, “The successful results that we have produced for our investors and the management teams we have partnered with over the years stem directly from our exclusive focus on technology and related services, and on middle market-sized companies in these spaces. By maintaining a consistent focus on our investment strategy, we have been able to bring to bear significant strategic, financial and operational resources to help the companies we partner with significantly accelerate their growth and build value.”
Rob Palumbo, Managing Director of Accel-KKR, added, “Over the years, our unique focus on mid-market and growth-oriented technology buyouts and investments has translated into a focus on building value through growth rather than financial leverage. This approach has fueled the strong returns that we have generated, and has also resonated well with investors in today’s choppy private equity environment.”
The closing of AKKR III follows recent successful liquidity events for Accel-KKR across both of its previous funds, including the sale of Saber Corp. to EDS Corp., which was named Middle Market Deal of the Year by Buyouts Magazine in 2008; the sale of CRS Retail Systems to Epicor Software Corp.; and the sale of 3D graphics innovator Alias to Autodesk, Inc.
The investment period for Accel-KKR III will commence shortly.
Accel-KKR is a technology-focused private equity firm with over $1 billion in assets under management. The firm invests primarily in technology businesses with $15 million to $150 million in revenue that are well positioned for top-line 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 through the significant resources available through the Accel-KKR network. Accel-KKR has a particular focus on buyouts and recapitalizations of family-owned or closely-held private companies, divisional buyouts of larger companies, and going-private transactions. For more information, please visit www.accel-kkr.com.