Technology-focused private equity firm Accel-KKR has closed its latest fund, Accel-KKR Emerging Buyout Partners LP at USD640 million, bringing Accel-KKR’s total assets under management to over USD10 billion.
“Despite the less-than-ideal conditions imposed by the pandemic, we completed a very efficient, successful fundraise almost completely during the lockdown,” Rob Palumbo, managing partner of Accel-KKR, commented on the fundraise.
Accel-KKR Emerging Buyout Partners LP Fund -which closed at its hard cap- comprised USD460 million in limited partner commitments and USD180 million in general partner commitments, and will continue Accel-KKR’s strategy of investing in software and tech-enabled services companies, with a special focus on small-cap companies.
The operating fund will be led by Phil Cunningham. Commenting on the fund close, Tom Barnds, managing partner of Accel-KKR, said: “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.”
Accel-KKR Emerging Buyout Partners LP mirrors Accel-KKR’s strategy of investing in and growing mission-critical software and tech-enabled service companies through a mix of inorganic and organic strategies. The Emerging Buyout Partners fund is intended to be an evergreen structure, thereby providing the fund with more flexibility to drive optimal capital allocation decisions that generate healthy long-term returns, according to the firm. Accel-KKR said it is well-positioned to bring the firm’s global reach, broad networks, operational capabilities, reputation and patient capital to a “traditionally underserved market.”
Since the beginning of 2019, Accel-KKR has undergone an active fundraising period, with the final closes on over USD5.8 billion in capital commitments including its most recent 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), as well as a continuation vehicle for its third buyout fund; Accel-KKR Capital Partners CV III.
