Accel-KKR closes fifth buyout fund on $1.3 bn

 The Californian firm will continue targeting small cap and lower midmarket software and IT-enabled services companies.  

Accel-KKR has closed its fifth technology-focused buyout fund at $1.3 billion. The firm started fundraising in the spring and reached its hard-cap in September, it said.

Accel-KKR Capital Partners V will focus on buyouts of small cap and midmarket software and IT-enabled services companies.

Investors included academic institutions, medical research foundations, healthcare institutions as well as corporate and government pensions and other limited partners from outside the US, the firm said.

Among its limited partners, the District of Columbia Retirement Board committed $30 million to Accel-KKR Capital Partners V, while general partners of the firm invested $100 million, according to PEI’s Research & Analytics division.

The firm invested in Motor Vehicle Software in September and Banker’s Toolbox in July. Similarly, Accel-KKR has also realised three investments through trade sales over the past several months, including the sale of RiseSmart to Randstad Holding in September, On Center Software to Roper Technologies in July and its disposal of Applied Predictive Technologies to MasterCard for $600 million in April.

Accel-KKR was established in 2000 by Accel Partners and KKR to invest in technology assets and other industries that do not fit with either firm’s investment focus. It takes a dual track approach to investing, acquiring majority stakes in technology companies through its buyout funds and minority interests from its growth capital funds. Accel-KKR raised its second Growth Capital Fund in 2014 with $350 million of committed capital. 

Accel-KKR closed its fourth buyout fund on $800 million in 2013.