The Goldman Sachs Asset Management (GSAM) Petershill programme has made a minority equity investment in technology-focused private equity Accel-KKR.
The investment by the Petershill programme is a passive, non-voting stake in Accel-KKR that represents less than 10 per cent of the economic interests of the firm.
Tom Barnds and Rob Palumbo, managing directors of Accel-KKR, say: “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,” say Barnds and Palumbo. “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, says: “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.
