Accel-KKR completed fundraising for two funds — Accel-KKR Capital Partners VII LP and Accel-KKR Emerging Buyout Partners II LP — with commitments totaling $5.3 billion.
Investors in the funds include: CalPERS; Los Angeles County Employees’ Retirement Association; San Francisco City and County Employees’ Retirement System; and Illinois Municipal Retirement Fund.
Accel-KKR represents the largest investor in both Fund VII and Emerging Buyout Partners II, with $300 million and $72 million in respective commitments, officials announced. The flagship buyout strategy continues with a focus on technology companies. The fund series span buyout, emerging buyout, growth capital and credit. In the last 14 months, the firm has closed four new funds representing $8.4 billion in capital.
“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,” said Rob Plumbo, co-managing partner at Accel-KKR. “We also are quite pleased to be able to continue supporting the social missions and great causes represented by our limited partners.”
Accel-KKR Capital Partners Fund VII closed at its hard cap of $4.4 billion and follows the previous buyout fund close of $2.85 billion in 2020. The focus for Accel-KKR is to make majority buyout investments in lower-middle market and middle market software and IT-enabled services companies that are well positioned for top line and bottom-line growth.
Accel-KKR Emerging Buyout Partners II closed at its hard cap of $920 million. The previous fund closed at $640 million in 2020. The strategy focuses on small-cap companies that are active in software and tech-enabled services.
“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,” said Tom Barnds, co-managing partner at Accel-KKR.
Recent 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 U.S.-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 U.S.-based retail execution and workforce management solution for specialty retailers; and, Loftware, a global leader in enterprise labeling and artwork management solutions.
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, officials said. In addition to buyout capital and minority-growth investments, Accel-KKR also provides capital solutions including credit alternatives through other funds that it manages.
