Goldman Sachs Asset Management’s Petershill program has taken a minority equity stake in Accel-KKR, the technology-focused private equity firm. No financial terms were disclosed. Barclays provided financial advice to Accel-KKR while Kirkland & Ellis provided legal advice.
Menlo Park, CA, May 2, 2017 – Accel-KKR, a leading technology-focused private equity firm, today announced that the Goldman Sachs Asset Management (GSAM) Petershill program has made a minority equity investment in the firm to help support Accel-KKR’s continued success. The investment by the Petershill program is a passive, non-voting stake in Accel-KKR that represents less than 10% of the economic interests of the firm.
Tom Barnds and Rob Palumbo, Managing Directors of Accel-KKR, said, “This investment follows a 15-year relationship between Accel-KKR and Goldman Sachs Asset Management under which Goldman Sachs Asset Management funds have invested across all three of Accel-KKR’s strategies – buyouts, growth capital and credit.”
Proceeds from the Petershill investment will be primarily used to increase Accel-KKR’s capital commitments to current strategies and to support potential new initiatives in the future. None of the capital is being distributed to the principals of Accel-KKR as part of the transaction.
“The principals of Accel-KKR are the largest investors across our capital base today,” Barnds and Palumbo said. “This investment will help us expand and grow our future capital commitments to our strategies, and to remain the largest investor going forward.”
Mike Brandmeyer, co-CIO of the Alternative Investments and Manager Selection Group, said, “We are excited to support AKKR’s future initiatives through our Petershill platform and we are looking forward to expanding our relationship through this partnership. This investment is another example of Petershill’s strategy to partner with leading private equity firms to provide strategic capital and support.”
Specific terms of the transaction are not being disclosed. Barclays provided financial advice and Kirkland & Ellis provided legal advice to Accel-KKR in connection with the transaction.
Accel-KKR is a technology-focused investment firm with over $4.3 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 through 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. Accel-KKR is headquartered in Menlo Park with additional offices in Atlanta and London. For more information, please visit: www.accel-kkr.com.