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Accel-KKR has closed its first Strategic Capital Fund, raising $2.2 billion to focus on secondary market investments in the software sector. The fund will target continuation vehicles and other transactions, leveraging the firm’s extensive experience in private equity and technology. This milestone highlights Accel-KKR’s ongoing commitment to supporting growth in the global software ecosystem.
A Groundbreaking Milestone in Private Equity
Accel-KKR has announced the successful close of its Strategic Capital Fund, securing $2.2 billion in commitments. This new fund reflects the firm’s ongoing focus on the software industry, with particular emphasis on secondary market investments. As one of the leading private equity firms specializing in technology-driven markets, Accel-KKR continues to build on its established history of fostering growth within the software sector.
The fund includes commitments from a diverse group of investors, including public plans, foundations, and university endowments, showcasing broad confidence in the firm’s strategy.
The Power Behind the $2.2 Billion Fund
Key contributors to the fund include prominent names such as Ardian, StepStone Group, Adams Street Partners, and CPP Investments. Accel-KKR and its affiliates have also committed 24% of the total capital. This significant internal commitment demonstrates strong alignment between the firm and its investors.
The fund stands as Accel-KKR’s first dedicated secondary fund backed by external capital, marking a departure from its historical use of internal resources for such investments.
Why Secondary Investments Are the Future of Private Equity
The private equity landscape has seen a rapid rise in secondary investments, particularly through continuation vehicles. Accel-KKR’s experience in this domain has positioned it to capitalize on emerging opportunities, particularly within the software industry.
Key drivers behind the growth of secondary markets include:
- Increased liquidity demands from investors.
- Enhanced flexibility for companies and sponsors in managing assets.
- The ability to extend the lifecycle of high-performing assets.
Accel-KKR’s Strategic Capital Fund is designed to leverage these trends, bringing software-focused expertise into a market primed for expansion.
How Accel-KKR Plans to Deploy the Fund
The fund’s capital will target a range of transactions focused on software assets. These include partnerships with third-party sponsors to support continuation vehicles and investments in Accel-KKR’s own continuation vehicles.
The firm’s previous successes in this space include:
- Accel-KKR Capital Partners CV IV, a $1.765 billion continuation vehicle for its 2013 vintage buyout fund.
- Accel-KKR Capital Partners CV III, a $1.386 billion continuation vehicle for its 2008 vintage buyout fund.
With this new fund, Accel-KKR aims to further its reach and deepen its impact within the software ecosystem.
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Expanding the Impact Across the Software Ecosystem
Accel-KKR has invested in or acquired more than 450 technology companies globally since its founding. These investments span diverse transaction types, including:
- Recapitalizations of founder-led companies.
- Carve-outs from larger corporate entities.
- Going-private transactions involving public companies.
This extensive track record underscores the firm’s commitment to fostering innovation and supporting growth-oriented software businesses.
Building on a Legacy of Success
Since its inception, Accel-KKR has raised 18 funds across five strategic areas, including buyouts, growth capital, credit, and emerging markets. Each fund has contributed to its reputation as a leader in technology investments.
The Strategic Capital Fund represents an evolution of this legacy, combining past experience with a forward-looking strategy that aligns with current market demands.
Accel-KKR’s Growing Role in the Technology Investment Space
Accel-KKR’s efforts underscore the growing importance of specialized expertise in navigating today’s complex private equity environment. The launch of the Strategic Capital Fund not only reinforces the firm’s leadership in secondary markets but also solidifies its role as a major player in advancing the software industry globally.
This milestone highlights Accel-KKR’s ability to adapt and innovate within its core focus areas, ensuring sustained impact in the ever-evolving tech landscape.
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