– Accel-KKR closed on over $2.2 billion in capital commitments for AKKR Strategic Capital LP (“the Fund”).
– This is the firm’s first fund dedicated to secondary investments using outside capital, partially seeded with existing investments.
– Investments will target the secondary market, primarily in the software industry, leveraging Accel-KKR’s long-standing expertise in software and tech-enabled services.
– Builds on over 15 years of Accel-KKR’s secondary market activity, previously funded primarily through its balance sheet.
– Significant growth observed in the private equity secondary market, particularly in GP-led continuation vehicles (CVs).
– Tom Barnds, Co-Managing Partner, stated: “The secondary market in private equity continues to experience significant growth, including accelerating growth in the GP-led continuation vehicle (‘CV’) segment.
– Lead investments in third-party continuation vehicles involving software assets. Continue participation in Accel-KKR’s own continuation vehicles, building on past successes.
– First investment example: Sole lead investor in a continuation vehicle managed by LEA Partners, extending the lifecycle of two high-quality DACH-based software businesses.
– Rob Palumbo, Co-Managing Partner at Accel-KKR, commented: “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.”
– Investors include public plans, foundations, university endowments, non-profits, and active secondary market participants.
– This is the firm’s first fund dedicated to secondary investments using outside capital, partially seeded with existing investments.
– Investments will target the secondary market, primarily in the software industry, leveraging Accel-KKR’s long-standing expertise in software and tech-enabled services.
– Builds on over 15 years of Accel-KKR’s secondary market activity, previously funded primarily through its balance sheet.
– Significant growth observed in the private equity secondary market, particularly in GP-led continuation vehicles (CVs).
– Tom Barnds, Co-Managing Partner, stated: “The secondary market in private equity continues to experience significant growth, including accelerating growth in the GP-led continuation vehicle (‘CV’) segment.
– Lead investments in third-party continuation vehicles involving software assets. Continue participation in Accel-KKR’s own continuation vehicles, building on past successes.
– First investment example: Sole lead investor in a continuation vehicle managed by LEA Partners, extending the lifecycle of two high-quality DACH-based software businesses.
– Rob Palumbo, Co-Managing Partner at Accel-KKR, commented: “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.”
– Investors include public plans, foundations, university endowments, non-profits, and active secondary market participants.
– Lead investor: Ardian; other investors: StepStone Group, Adams Street Partners, and CPP Investments | Investissements RPC.
– General Partner and affiliates contributed approximately 24% of the fund’s committed capital.
– Accel-KKR was founded in 2000, the firm has invested in or acquired over 450 technology companies globally.
– Focus areas include acquisitions, recapitalizations, divisional buyouts, and going-private transactions. Manages 18 funds across five families.