Accel-KKR, a technology-focused private equity firm founded by Kohlberg Kravis Roberts and Accel Partners, has acquired a “significant equity stake” in Alexander Gallo Holdings by backing the company’s acquisition of The Hobart West Group.
Atlanta, Georgia-based Alexander Gallo and Florham Park, New Jersey-based Hobart West are court reporting and litigation services companies.
No financial details were disclosed.
Accel-KKR’s participation in the deal allowed the acquisition to occur despite the challenging deal environment, Alex Gallo, founder of Alexander Gallo, said in a statement. The private equity firm’s technology focus also complements the company’s emphasis on technology-enabled services, he added.
Alexander Gallo-backer VSS Structured Capital, an investment fund of private equity firm Veronis Suhler Stevenson (VSS), has realised a “substantial majority” of its investment as a result of Accel-KKR’s investment.
VSS provided Alexander Gallo with its first institutional capital in April 2006 when the fund underwrote two add-on acquisitions for the company, VSS managing director David Bainbridge told PEO.
VSS, a minority investor in Alexander Gallo, continued to support further acquisitions by the company in the last two years.
“Depending on the situation we would love to put more money behind Alex,” said Bainbridge, despite having largely exited the company. “These businesses, court reporting and litigation support, tend to be countercyclical based on the fact that most litigation, especially financial service litigation, happens when the markets are having difficulties.”
VSS is a private equity firm that invests buyout and structured capital funds in the media, communications, information and education industries in North America and Europe. The firm’s fourth equity fund closed on $1.3 billion in 2006.
Founded in 2000, Menlo Park, California-based Accel-KKR specialises in making majority investments in mid-market technology companies with revenues between $15 million and $150 million. The firm last month closed its third fund on $600 million bringing committed capital under management to more than $1 billion.
Partners from Accel and KKR are “significant personal investors” in the firm’s funds, according to a company spokesperson. Partners from the two firms also are represented on Accel-KKR's advisory board.