Accel-KKR has completed fundraising for Accel-KKR Structured Capital Partners II with $325 million in committed capital. The firm began raising Fund II in early 2014 with a $250 million target. The new fund received support from existing limited partners and also attracted numerous first-time investors.
“We are heartened by the support we received from our existing investors, which provided for an expedited fundraising process, allowing the firm to continue its focus on identifying and working closely with great businesses that need capital to continue their growth,” said Rob Palumbo, Managing Director of Accel-KKR.
Fund II will continue the strategy of making minority equity investments in technology companies using senior equity and other structured securities. “The idea behind our structured capital funds developed over the years as we saw so many good businesses with great management teams where minority stakes – as opposed to majority investments – made sense,” said Tom Barnds, Managing Director of Accel-KKR.
The partners and employees of Accel-KKR are committing 7% of the capital to Fund II, making the firm one of the largest investors. “We believe in strong alignment of incentives with our investors, and a very significant financial commitment from the firm to the fund is one of the many ways we seek to build and demonstrate that alignment,” said Tom Barnds, Managing Director.
Accel-KKR invests in middle market software and technology enabled service companies with revenues greater than $10 million. The firm invests in both majority ownership situations via its buyout funds, and minority equity positions through its Structured Capital funds. Accel-KKR was founded in 2000 and is headquartered in Menlo Park with additional offices in Atlanta and London (www.accel-kkr.com).
“While Accel-KKR invests in a wide variety of situations from our structured capital funds, we have found a particularly attractive niche in working with closely-held, owner-operated businesses that need capital for growth,” said Greg Williams, Managing Director at Accel-KKR who focuses on structured capital opportunities for the firm.
Accel-KKR raised its first structured capital fund with $180 million in capital commitments in 2011. The firm is also investing out of its fourth buyout fund, Accel-KKR Capital Partners IV, a $800 million fund that was raised in 2012.
© 2014 PEPD • Private Equity’s Leading News Magazine • 3-31-14