Accel-KKR Closes Fifth Buyout Fund

Accel-KKR Closes Fifth Buyout Fund

accell krr nf1Accel-KKR has closed its fifth buyout fund with $1.3 billion in committed capital.  Fundraising began during the Spring of 2015 and the fund closed at its hard cap earlier this month.  Fund V, like earlier funds, will invest in lower-middle market and middle-market software and IT-enabled services companies.

According to Accel-KKR, the fund received strong support from its investors in prior funds, as well as from a number of new investors.  More than one-third of the committed capital is from international investors.

Tom barnds nf1“We are heartened by the support we received from our existing investors, and are quite pleased to welcome a number of new investors to the fund,” said Tom Barnds, Managing Director of Accel-KKR.  “The missions of our investors, who include academic institutions, medical research foundations, health care institutions, and corporate and government pensions, resonate deeply with the Accel-KKR team.”

Accel-KKR invests in both majority ownership situations via its buyout funds, and minority equity positions through its structured capital funds.  With the closing of Fund V, Accel-KKR’s total committed capital now totals $4 billion.  Fund V follows the firm’s fourth buyout fund, which it began investing in 2013 with $800 million of commitments.  Accel-KKR was founded in 2000 and is headquartered in Menlo Park with additional offices in Atlanta and London (

Rob Palumbo nf1The new fund also includes a $100 million commitment from the firm’s general partners.  “We believe in strong alignment of interest with our limited partners,” said Rob Palumbo, Managing Director of Accel-KKR. “One of the many ways we seek to achieve this alignment is by making very significant financial commitments to invest alongside of our limited partners.”  The $100 million commitment represents the largest general partner commitment in Accel-KKR’s history and also makes the general partner the largest investor in Fund V.

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-28-15

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