Accel-KKR, a technology-focused private equity firm, announced today the successful completion of Accel-KKR Capital Partners CV III, L.P., a $1.386 billion continuation vehicle.
Accel-KKR Capital Partners CV III is comprised of $1.161 billion in new capital commitments, which have funded the purchase of four portfolio companies that were the remaining assets of Accel-KKR Capital Partners III, L.P. (“Fund III”) – a $600 million fund that closed in 2008 – as well as a new $225 million commitment to fund follow-on investments in these four companies:
Paymentus, an integrated payments software platform based in Charlotte, North Carolina;
iSolved, a provider of work force management software and services based in Charlotte, North Carolina;
TrueCommerce, a provider of supply chain management software and services based in Pittsburgh, Pennsylvania; and,
Infinisource, a provider of outsourced HR and benefits solutions, headquartered in Coldwater, Michigan.
The continuation fund seeks to drive further value appreciation in the four companies over an extended timeframe. The four companies currently have combined revenues in excess of $500 million and employ more than 2,200 people. Accel-KKR previously exited eight platform companies from Fund III.
In addition to lead investors Goldman Sachs Vintage Funds, GIC and Adams Street, the investor base of Accel-KKR Capital Partners CV III is comprised of a diverse group of secondary and primary investors including existing Fund III investors. All Fund III limited partners had the option of reinvesting their Fund III value into the acquisition fund or receiving full or partial liquidity. Post-transaction, the employees of Accel-KKR comprise, as a group, the single largest investor in Accel-KKR Capital Partners CV III.
Tom Barnds, Managing Director of Accel-KKR, said, “In aggregate, these four strong businesses have grown eightfold over the course of Accel-KKR’s investment in them through Fund III. As we believe each company is well positioned to continue to grow and generate significant value, we are pleased that this process gives us and our fellow investors the ability to continue to partner with each company in the next phase of their journey.”
Rob Palumbo, Managing Director of Accel-KKR, added, “We are quite pleased with both the strong results of Fund III to this point, as well as the incremental $225 million of follow-on capital from this investor group that will allow us to further fuel these companies’ continued growth.”
Evercore served as financial adviser to Fund III. Kirkland & Ellis served as legal adviser to the funds and Accel-KKR.
Accel-KKR is a technology-focused investment firm with over $9 billion in capital commitments. The firm focuses on software and IT-enabled businesses well-positioned for top-line and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value through significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions including buyout capital, minority-growth investments, and credit alternatives. Accel-KKR also invests across a wide range of transaction types including private company recapitalizations, divisional carve-outs and going-private transactions. Accel-KKR is headquartered in Menlo Park with additional offices in Atlanta and London. For more information, please visit accel-kkr.com.
Note to Editors: Accel- KKR was formed in 2000 as a joint venture between venture investor Accel and private-equity firm KKR. The firm is now independent and has raised more than $9 billion of committed capital across its growth, buyouts and credit funds.