Accel-KKR

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Accel-KKR
TypePrivate Ownership
IndustryPrivate Equity
Founded2000
HeadquartersMenlo Park, California, U.S.
Total assets$10 billion[1]
Number of employees
75
Websitewww.accel-kkr.com

Accel-KKR is an American technology-focused private equity firm with over $10 billion in total assets under management. The firm invests primarily in middle-market software and technology-enabled services businesses, providing capital for buyouts and growth investments across a range of opportunities including recapitalizations, divisional carve-outs, and going-private transactions. The company has offices in Menlo Park, California, (headquarters), Atlanta, Georgia (opened in 2006), Mexico City (opened in 2018), and London (opened in 2013).

History[]

The firm was founded in February 2000 as a partnership between the venture capital firm Accel Partners and Kohlberg Kravis Roberts, one of the oldest and largest leveraged buyout firms.[2] Since the mid-2000s, the firm has operated independently of its original backers. Today the firm is run by Co-Managing Partners Tom Barnds and Rob Palumbo with headquarters in the San Francisco Bay Area.[citation needed]

Accel-KKR’s second fund closed in 2006 with over $300 million in capital commitments[3] and its third fund closed in 2008 with $600 million, a third over its $450 million target.[4] In 2012, the firm closed its fourth fund with $750 million, exceeding its target of $700 million.[5]

In 2015, Accel-KKR raised $1.3 billion for its fifth buyout fund, including $100 million from the firm’s general partners, making it the largest general partner commitment to date. The fund also drew a third of its capital from outside the US.[6]

Since the firm’s inception through 2015, Accel-KKR had reported a 32% annualized return on investment.[6]

In May 2017, Goldman Sachs Asset Management's Petershill unit took a minority stake of less than 10% in Accel-KKR.[7]

In 2019 and 2020, Inc. named Accel-KKR one of the “50 Best Private Equity Firms for Entrepreneurs”[8][9] while the American Chamber of Commerce in New Zealand recognized the firm as “Investor of the Year from the USA” in 2019 for its investment in Seequent Ltd.[10] Accel-KKR was also named the "2019 GP-Led Deal of The Year in the Americas" by Private Equity International in recognition of Accel-KKR Capital Partners CV III fund, which closed in September 2019.[11]

In January 2020, Accel-KKR closed on $276.7 million in commitments for Accel-KKR Credit Partners LP – Series 1, its private lending vehicle, which targets maturing software startups whose collateral may fall short of what bank lenders require for loans.[12] Also in 2020, the firm closed on its first fund intended specifically to invest in smaller companies. The $640 million Accel-KKR Emerging Buyout Partners LP fund is focused on software and technology companies with enterprise values of $70 million or less.[1]

As of 2020, Accel-KKR has raised over $10 billion of investor commitments[1] and invested in or acquired over 250 software and technology-enabled services companies, with the majority of such companies in the United States. Of those, Accel-KKR has completed 79 international transactions, including 48 in Europe, 11 in Canada, 12 in Australia/NZ/Asia-Pacific, 6 in Latin America and 2 in South Africa.[13]

Current Portfolio Companies[]

Accel-KKR’s current portfolio companies include:[13]

  • Abrigo
  • Cielo
  • ClickDimensions
  • Delta Data
  • ESG
  • ESO Solutions
  • FastSpring
  • FM Systems
  • Forcura
  • HumanForce
  • IMED
  • IntegriChain
  • ITC
  • Kimble Applications[14]
  • Lemontech
  • Navtor
  • OrthoFi
  • Paymentus
  • Partnerize[15]
  • Pegasus
  • Peppermint Technology
  • Reapit
  • Recurly
  • SafeGuard
  • Salsa
  • Sandata
  • Seequent
  • Siigo
  • Smart Communications
  • SugarCRM
  • Surgical Information Systems
  • Team Software
  • TELCOR
  • Tools Group
  • TravelTripper
  • TrueCommerce
  • Vistex
  • Vitu

Selected Previous Investments[]

Previous investments from which Accel-KKR has since exited include:

  • Vyne sold to TJC[16]
  • Abila sold to Community Brands for over $280 MM in 2017[17]
  • Cielo sold to Permira in 2019
  • One.com sold to Cinven in 2018
  • RiseSmart sold to Randstad for $100 MM in 2015[18]
  • Zinc Ahead sold to Veeva for $130 MM in 2015[19]
  • On Center Software sold to Roper Industries for $157 MM in 2015
  • Accumatica sold to EQT Partners in 2019
  • PrismHR sold to Summit Partners in 2017
  • Clavis Insight sold to Ascential plc in 2017
  • Applied Predictive Technologies sold to MasterCard for $600 MM in 2015[20]
  • sold to Roper Industries for $525 MM in 2010
  • Endurance International Group sold to Warburg Pincus for $1 billion in 2011[21]
  • sold to Electronic Data Systems for $463 MM in 2007
  • sold to AmerisourceBergen for $35 MM in 2011[22]
  • sold to Epicor for $121 MM in 2005
  • sold in two transactions to Torex and Accenture for $100 MM in 2006
  • sold to Constellation Software in 2007
  • Alias Systems Corporation sold to Autodesk for $197 MM in 2006
  • Kana Software sold to Verint Systems for $514 MM in 2014
  • N-able sold to Solar Winds for $127 MM in 2013
  • HighJump sold to Korber for $725 MM in 2017
  • Jaggaer sold to Cinven for over $1.5 billion in 2019
  • Episerver sold to Insight Venture Partners for $1.16 billion in 2018
  • Model N, which went public on the NYSE under the ticker symbol MODN in 2013

References[]

  1. ^ Jump up to: a b c Laura Cooper, "Accel-KKR Closes First Small-Cap Fund," The Wall Street Journal, October 29, 2020.
  2. ^ "What's An Aging 'Barbarian' To Do?". The New York Times. 2011-08-26. Retrieved 2020-05-07.
  3. ^ "Accel-KKR Closes Fund II," PE Hub, November 20, 2006.
  4. ^ "Accel-KKR Closes on $600 Million Fund," The New York Times, September 11, 2008.
  5. ^ "Accel-KKR closes fourth fund on $750m," AltAssets, April 2, 2012.
  6. ^ Jump up to: a b Richard Waters, "Accel-KKR raises $1.3bn for new tech fund," Financial Times, September 27, 2015.
  7. ^ Lim, Dawn; Cooper, Laura (2017-05-02). "Goldman Takes Minority Stake in Accel-KKR". The Wall Street Journal. ISSN 0099-9660. Retrieved 2020-10-26.
  8. ^ Winfrey, Graham (August 2019). "The 50 Best Private Equity Firms for Entrepreneurs". Inc.com. Retrieved 22 November 2020.
  9. ^ "The Best Private Equity Firms for Entrepreneurs". Inc.com. August 2020. Retrieved 22 November 2020.
  10. ^ Hearn, Mike (23 August 2019). "Peter Beck takes out Supreme Award at the 2019 AmCham". AmCham. Retrieved 22 November 2020.
  11. ^ "PEI Awards 2019: Americas winners". Secondaries Investor. 2 March 2020. Retrieved 30 November 2020.
  12. ^ "Accel-KKR Pulls in $276.7 Million for Credit Fund," The Wall Street Journal, January 3, 2020.
  13. ^ Jump up to: a b "Portfolio - Accel-KKR". Retrieved 12 November 2020.
  14. ^ https://www.dlapiper.com/en/uk/news/2018/03/dla-piper-advises-accel-kkr/
  15. ^ "Partnerize Raises $50 Million Growth Financing Round Led By Accel-KKR". Accesswire. 2020-01-08. Retrieved 2020-10-26.
  16. ^ "Accel-KKR sells Vyne to TJC". 2019-06-25.
  17. ^ Cooper, Laura (2017-04-07). "Accel-KKR Exits Abila in Sale to Community Brands". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-10-26.
  18. ^ "RANDSTAD BUYS OUTPLACEMENT FIRM RISESMART FOR $100 MILLION". Retrieved 2 October 2016.
  19. ^ "Veeva scoops up rival Zinc Ahead to create mega-content management platform". Retrieved 2 October 2016.
  20. ^ "MasterCard Announces Acquisition of Applied Predictive Technologies - Business Wire". 2015-04-27. Retrieved 3 September 2016.
  21. ^ "Accel-KKR Group Sells Web Hosting Giant Endurance International for $1 Billion - Web Host Industry Review". Retrieved 3 September 2016.
  22. ^ "AmerisourceBergen Buys Chemo I.T. Vendor IntrinsiQ". 2011-09-06. Retrieved 2 October 2016.

Further reading[]

External links[]

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