KKR raised approximately $3 billion for its third technology growth fund that invests in technology companies across North America, Europe and Israel.
The KKR Next Generation Technology Growth Fund III continues the strategy of preceding NGT I and NGT II growth funds in providing equity capital to high-growth technology companies as well as access to KKR’s global capabilities and network. KKR will be investing approximately $435 million of capital in the fund alongside investors through the Firm’s balance sheet, affiliates and employee commitments.
“Even in challenging market environments, focusing on investing in technology that solves for the real needs of companies creates a long-term opportunity for performance. We’ve seen firsthand that innovation is a critical driver of investment returns,” said Dave Welsh, KKR partner and global head of Tech Growth. “With the new fund, we are deepening our commitment to investing in leading companies that are advancing digital transformation by helping businesses operate and serve their customers better, and more securely.”
The team said that the new fund comes at a time of accelerated digital transformation within enterprises globally. AI applications have also evolved alongside the growing reliance on technology in consumers’ daily lives. This has created an environment that will allow new companies to emerge and scale, KKR officials said.
“KKR’s deep network of global resources has made us a partner of choice for some of the most innovative technology companies in the world, and our experience in the space has demonstrated a proven ability to add value and scale growing businesses,” said Jake Heller, partner and head of Tech Growth, Americas.
KKR has invested over $21.6 billion in related investments since 2014 and built a dedicated global team of more than 35 investment professionals with deep technology growth equity expertise. To date, KKR has executed several transactions as part of its tech growth strategy, including DarkTrace, KnowBe4, Onestream, OutSystems, NetSPI and Restaurant365.
“Innovation across verticals coupled with organizations’ increasing reliance on technology has created an environment that is ripe for entrepreneurs to build sustainable and attractive business models. We see significant opportunity to continue partnering with the entrepreneurs leading these businesses and helping them achieve their growth ambitions,” said Stephen Shanley, partner and head of Tech Growth, Europe.