Accel-KKR Raises First Strategic Capital Fund, Closing On Over $2.2 Billion for Secondary Investments in the Software Market

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Nov 21, 2024, 08:00 ET

MENLO PARK, Calif., Nov. 21, 2024 /PRNewswire/ -- Accel-KKR, a global technology-focused investment firm, today announced the completion of fundraising for AKKR Strategic Capital LP (the "Fund"), closing on over $2.2 billion of capital commitments.

AKKR Strategic Capital will invest in a broad range of transactions primarily focused on the software industry in the secondary market, aligning with the firm's long-standing focus and experience backing growing software and technology enabled services companies. Accel-KKR has invested broadly in the secondary markets for over 15 years, utilizing capital primarily from its own balance sheet. AKKR Strategic Capital will be Accel-KKR's first fund dedicated to secondary investments utilizing outside capital, partially seeded with existing investments.

Tom Barnds, Co-Managing Partner at Accel-KKR, said, "The secondary market in private equity continues to experience significant growth, including accelerating growth in the GP-led continuation vehicle ("CV") segment. Based on our own successful experience with CVs, as well as other opportunities that we expect to find more broadly within the Accel-KKR ecosystem, we believe our firm is well positioned to bring specialized software expertise to the secondary market."

Rob Palumbo, Co-Managing Partner at Accel-KKR, said, "We are quite pleased to be able to expand our capital available for investment in the secondary market, and look forward to partnering with many of our investors in this fund who bring very complementary secondary experience to the table."

AKKR Strategic Capital will seek to lead investments in other sponsors' continuation vehicles consisting of software assets, building on its experience to date. Accel-KKR made its first investment in this market, serving as sole lead investor in a continuation vehicle managed by LEA Partners, a DACH-headquartered private equity firm, to extend the duration of two high-quality software businesses in LEA's portfolio with significant organic growth and M&A opportunities.

In addition to investing in and leading third-party CVs, AKKR Strategic Capital can participate in future Accel-KKR CVs. Accel-KKR has significant experience in the CV market through its own CVs including:

In 2022, the firm completed Accel-KKR Capital Partners CV IV, a $1.765 billion multi-asset continuation vehicle for Accel-KKR's $875 million 2013 vintage technology buyout fund.
In 2019, Accel-KKR completed Accel-KKR Capital Partners CV III, a $1.386 billion multi-asset continuation vehicle for its $600 million 2008 vintage technology buyout fund.

The investors in AKKR Strategic Capital comprise a diverse group of limited partners including public plans, foundations, university endowments and non-profits. Many of these limited partners are active investors in the secondary markets. The lead investor in AKKR Strategic Capital is Ardian, and other investors include StepStone Group, Adams Street Partners and CPP Investments. The General Partner and its affiliates have made an aggregate commitment of approximately 24% of the fund's committed capital.

Accel-KKR has invested in or acquired over 450 technology companies globally since its founding in 2000, making it one of the most active private equity firms in the software and tech-enabled services sector. 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. Over its history, Accel-KKR has raised 18 funds across five fund families, including Buyout (for majority investments), Emerging Buyout (for smaller majority investments), Growth Capital (for minority investments), Credit (for debt investments) and Strategic Capital.

About Accel-KKR
Accel-KKR is a technology-focused investment firm with $21 billion in cumulative capital commitments. The firm focuses on software and tech-enabled businesses, well-positioned for top-line 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 partner companies and a focus on building value alongside management by leveraging the 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 various transaction types, including private company recapitalizations, divisional carve-outs and going-private transactions. Accel-KKR's headquarters is in Menlo Park, with offices in Atlanta, Chicago, London, and Mexico City. Visit accel-kkr.com to learn more.

Contact: Todd Fogarty, Kekst CNC, [email protected]

SOURCE Accel-KKR