Accel-KKR has closed its Structured Capital Partners Fund II on $325 million, surpassing its $250 million target, according to a statement.
Fund II launched earlier this year and received strong support from existing limited partners, according to the statement. Accel-KKR partners and employees also committed 7 percent, or about $25 million, of the fund’s capital, making the firm one of the larger LPs in the vehicle.
Accel-KKR’s structured capital funds make minority investments in mid-market technology and software companies and focuses on buyouts, recapitalisations and take-privates. Target companies have more than $10 million in revenue and are often owner-operated.
“The idea behind our Structured Capital funds developed over the years as we saw so many good businesses with great management teams where minority stakes—as opposed to majority investments—made sense,” managing director Tom Barnds said in the statement.
Accel-KKR’s debut Structured Capital Partners fund closed on $180 million, surpassing its $150 million target, in 2011 and received commitments from fund of funds managers Golden State Investment Partners and Fort Washington Capital Partners, according to Private Equity International’s Research and Analytics division. The fund has already held two liquidity events, including the sale of remote technology monitoring company N-able Technologies for $127 million last May.
Accel-KKR also manages investments from its buyout strategy. Its most recent fund, Accel-KKR Capital Partners Fund IV, raised more than $800 million in 2012.
Accel-KKR was founded in 2000 by Accel Partners and Kohlberg Kravis Roberts to invest in sectors that are outside each firm’s core focus. The firm is led by six managing directors and is based in Menlo Park. The firm opened an office in London last August and also has an office in Atlanta.