Accel-KKR

Accel-KKR is an American technology-focused private equity firm with over $14 billion in total assets under management. The firm invests primarily in middle-market software and technology-enabled services businesses, providing capital for buyouts and growth investments across a range of opportunities, including recapitalization, divisional carve-outs, and going-private transactions. The company has offices in Menlo Park, California, (headquarters), Atlanta, Georgia (opened in 2006), Mexico City (opened in 2018), and London (opened in 2013).

Accel-KKR
TypePrivate Ownership
IndustryPrivate Equity
Founded2000 (2000)
HeadquartersMenlo Park, California, U.S.
AUMUS$14.6 billion (2022)[1]
Number of employees
75 (2022)[1]
Websitewww.accel-kkr.com

History

The firm was founded in February 2000 as a partnership between the venture capital firm Accel Partners and Kohlberg Kravis Roberts, one of the oldest and largest leveraged buyout firms.[2] Since the mid-2000s, the firm has operated independently of its original backers. Today the firm is run by co-managing partners Tom Barnds and Rob Palumbo, with headquarters in the San Francisco Bay Area.[3]

Accel-KKR’s second fund closed in 2006 with over $300 million in capital commitments[4] and its third fund closed in 2008 with $600 million, a third over its $450 million target.[5] In 2012, the firm closed its fourth fund with $750 million, exceeding its target of $700 million.[6]

In 2015, Accel-KKR raised $1.3 billion for its fifth buyout fund, including $100 million from the firm’s general partners, making it the largest general partner commitment to date. The fund also drew a third of its capital from outside the US.[7]

Since the firm’s inception through 2015, Accel-KKR had reported a 32% annualized return on investment.[7]

In May 2017, Goldman Sachs Asset Management's Petershill unit took a minority stake of less than 10% in Accel-KKR.[8]

In 2018, Accel-KKR bought a majority stake in SugarCRM, buying out some early investors.[9][10]

In January 2020, Accel-KKR closed on $276.7 million in commitments for Accel-KKR Credit Partners LP – Series 1, its private lending vehicle, which targets maturing software startups whose collateral may fall short of what bank lenders require for loans.[11] Also in 2020, the firm closed on its first fund intended specifically to invest in smaller companies. The $640 million Accel-KKR Emerging Buyout Partners LP fund is focused on software and technology companies with enterprise values of $70 million or less.[12]

In February 2022, the firm closed on $1.35 billion in commitments for its fourth growth fund, Accel-KKR Growth Capital Partners IV LP[13] and in March raised $1.77 billion for Continuation Vehicle IV, aimed at follow-on investments in seven companies from a 2013 buyout fund: Abrigo, Vitu, Kerridge, ESG, IntegriChain, ClickDimensions and TrueCommerce.[14]

As of 2022, Accel-KKR has raised over $14 billion of investor commitments[12] and invested in or acquired over 300 software and technology-enabled services companies, with companies primarily based across North America, Europe, Australia and New Zealand. Of those, Accel-KKR has completed 80 international transactions, including 48 in Europe, 11 in Canada, 12 in Australia/NZ/Asia-Pacific, 6 in Latin America and 2 in South Africa.[15]

Management

Tom Barnds is founder and Co-Managing Partner of Accel-KKR. Prior to Accel-KKR, Barnds was a Managing Director at Nassau Capital, a private equity firm responsible for investing $2.5 billion of Princeton University’s endowment, and ran the business development division for medical supply provider McGaw Inc.[16][17] Barnds currently sits on the boards of FastSpring, Imed, Kerridge Commercial Systems, Kimble, Lemontech, Mavenlink, NAVTOR, Recurly, Siigo, Smart Communications, Springbrook Software, TELCOR, Vendavo and Vitu.[16][18] In 2021, he was named one of the Top 100 Stanford MBA Alumni in Finance and Investing.[17]

Recognition

In 2019 and 2020, Inc. named Accel-KKR one of the “50 Best Private Equity Firms for Entrepreneurs”[19][20] while the American Chamber of Commerce in New Zealand recognized the firm as “Investor of the Year from the USA” in 2019 for its investment in Seequent Ltd.[21] Accel-KKR was also named the "2019 GP-Led Deal of The Year in the Americas" by Private Equity International in recognition of Accel-KKR Capital Partners CV III fund, which closed in September 2019.[22] In 2021, Accel-KKR was named among Inc.’s annual list of Top Founder-Friendly Investors.[23] Accel-KKR’s sale of Seequent was named "2021 International Deal of the Year" by Buyouts magazine. Under Accel-KKR’s ownership, the New-Zealand-based medical imaging business grew into a global software provider of 3D geological models and analytics used in mining, civil engineering and energy industries before being sold to Bentley Systems for a total value of USD$1.05 billion.[24]

Current Portfolio Companies

Accel-KKR’s current portfolio companies include:[15]

  • Abrigo
  • ATP
  • Birdeye
  • Cendyn
  • ClickDimensions
  • Drips
  • Endalia
  • Entersekt
  • ESG
  • ESO Solutions
  • FastSpring
  • FM Systems
  • Forcura
  • Friss
  • GPS Insight
  • HumanForce
  • IMED
  • IntegriChain
  • Kaleris
  • Kantata
  • Kerridge Commercial Systems[25]
  • Lemontech
  • Masabi
  • Navtor
  • Ontraport
  • OrthoFi
  • Paymentus
  • Partnerize[26]
  • Pegasus
  • Peppermint Technology
  • PropLogix
  • Reapit
  • Recurly
  • SafeGuard
  • Salary.com
  • Sandata
  • Siigo
  • Smart Communications
  • Springbrook
  • SugarCRM
  • Surgical Information Systems
  • TELCOR
  • ToolsGroup
  • TrueCommerce
  • Unimarket
  • Uptick
  • Vendavo
  • Vistex
  • Vitu
  • Xtiva
  • Yes Energy

Selected Previous Investments

Previous investments from which Accel-KKR has since exited include:

  • Vyne sold to TJC[27]
  • Abila sold to Community Brands for over $280 MM in 2017[28]
  • Cielo sold to Permira in 2019
  • One.com sold to Cinven in 2018
  • RiseSmart sold to Randstad for $100 MM in 2015[29]
  • Zinc Ahead sold to Veeva Systems for $130 MM in 2015[30]
  • On Center Software sold to Roper Industries for $157 MM in 2015
  • Accumatica sold to EQT Partners in 2019
  • Patientco sold to Waystar for over $450 million in 2021[31]
  • PrismHR sold to Summit Partners in 2017
  • Clavis Insight sold to Ascential plc in 2017
  • Applied Predictive Technologies sold to MasterCard for $600 MM in 2015[32]
  • iTradeNetwork sold to Roper Industries for $525 MM in 2010
  • Endurance International Group sold to Warburg Pincus for $1 billion in 2011[33]
  • Saber Corporation sold to Electronic Data Systems for $463 MM in 2007
  • IntrinsiQ sold to AmerisourceBergen for $35 MM in 2011[34]
  • CRS Retail Systems sold to Epicor for $121 MM in 2005
  • Savista sold in two transactions to Torex and Accenture for $100 MM in 2006
  • Seequent sold to Bentley Systems for USD$1.05 billion in 2021[24]
  • ShowingTime sold to Zillow Group for $500 million in 2021[35]
  • Systems & Software, Inc. sold to Constellation Software in 2007
  • Team Software sold to Workwave in 2021[36]
  • Alias Systems Corporation sold to Autodesk for $197 MM in 2006
  • Kana Software sold to Verint Systems for $514 MM in 2014
  • N-able sold to Solar Winds for $127 MM in 2013
  • HighJump sold to Korber for $725 MM in 2017
  • Jaggaer sold to Cinven for over $1.5 billion in 2019
  • Ektron, purchased in 2014,[37] merged with Episerver in 2015[38][39][40]
  • Episerver, purchased in 2014,[41][42] sold to Insight Venture Partners for $1.16 billion in 2018[43]
  • Model N, which went public on the NYSE under the ticker symbol MODN in 2013

References
  1. "Accel KKR 2022 Form ADV" (PDF). SEC.gov. U.S. Securities and Exchange Commission. 3 June 2022. pp. 6–7.
  2. "What's An Aging 'Barbarian' To Do?". The New York Times. 2011-08-26. Retrieved 2020-05-07.
  3. "Accel-KKR Announces Closing of $1.765 Billion Accel-KKR Capital Partners CV IV Fund". prnewswire.com (Press release). March 30, 2022.
  4. "Accel-KKR Closes Fund II," PE Hub, November 20, 2006.
  5. "Accel-KKR Closes on $600 Million Fund," The New York Times, September 11, 2008.
  6. "Accel-KKR closes fourth fund on $750m," AltAssets, April 2, 2012.
  7. Richard Waters, "Accel-KKR raises $1.3bn for new tech fund," Financial Times, September 27, 2015.
  8. Lim, Dawn; Cooper, Laura (2017-05-02). "Goldman Takes Minority Stake in Accel-KKR". The Wall Street Journal. ISSN 0099-9660. Retrieved 2020-10-26.{{cite news}}: CS1 maint: url-status (link)
  9. "Zendesk expands into CRM with Base acquisition". TechCrunch. 10 September 2018. Retrieved 24 April 2023.
  10. "Accel-KKR buys majority stake in SugarCRM with 9-figure investment". Biz Journals. Retrieved 24 April 2023.
  11. "Accel-KKR Pulls in $276.7 Million for Credit Fund," The Wall Street Journal, January 3, 2020.
  12. Cooper, Laura (29 October 2020). "Accel-KKR Closes First Small-Cap Fund". The Wall Street Journal. ISSN 0099-9660. Archived from the original on 30 October 2020. Retrieved 5 November 2020.
  13. Cooper, Laura; Singh, Preeti (February 28, 2022). "Accel-KKR Banks $1.35 Billion for New Growth Fund". The Wall Street Journal. Retrieved January 12, 2023.{{cite web}}: CS1 maint: url-status (link)
  14. "Accel-KKR pulls in over $3bn in a month after gathering $1.77bn for latest continuation fund close". AltAssets. May 31, 2022. Retrieved January 23, 2023.{{cite web}}: CS1 maint: url-status (link)
  15. "Portfolio - Accel-KKR". Retrieved 6 January 2023.
  16. "Tom Barnds". Accel-KKR. Retrieved 2023-01-17.
  17. "The Top 100 Stanford MBA Alumni In Finance & Investing". C-Suite Spotlight. 23 March 2021.
  18. "Thomas Barnds "Tom"". Bloomberg. Retrieved 2023-01-17.
  19. Winfrey, Graham (August 2019). "The 50 Best Private Equity Firms for Entrepreneurs". Inc.com. Retrieved 22 November 2020.
  20. "The Best Private Equity Firms for Entrepreneurs". Inc.com. August 2020. Retrieved 22 November 2020.
  21. Hearn, Mike (23 August 2019). "Peter Beck takes out Supreme Award at the 2019 AmCham". AmCham. Retrieved 22 November 2020.
  22. "PEI Awards 2019: Americas winners". Secondaries Investor. 2 March 2020. Retrieved 30 November 2020.
  23. "Founder-Friendly Investors," Inc., retrieved January 21, 2023.
  24. "International Deal of the Year: Accel-KKR and Seequent". Buyouts Insider. 1 April 2022. Retrieved 20 January 2023.
  25. "DLA Piper advises Accel-KKR on its investment in Kimble Applications | News | DLA Piper Global Law Firm".
  26. "Partnerize Raises $50 Million Growth Financing Round Led By Accel-KKR". Accesswire. 2020-01-08. Retrieved 2020-10-26.
  27. "Accel-KKR sells Vyne to TJC". 2019-06-25.
  28. Cooper, Laura (2017-04-07). "Accel-KKR Exits Abila in Sale to Community Brands". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-10-26.
  29. "RANDSTAD BUYS OUTPLACEMENT FIRM RISESMART FOR $100 MILLION". Retrieved 2 October 2016.
  30. "Veeva scoops up rival Zinc Ahead to create mega-content management platform". Retrieved 2 October 2016.
  31. Davis, Michelle (July 14, 2021). "EQT-Backed Waystar Buys Patientco in Payments Software Deal". Bloomberg News. Retrieved February 1, 2023.{{cite web}}: CS1 maint: url-status (link)
  32. "MasterCard Announces Acquisition of Applied Predictive Technologies - Business Wire" (Press release). 2015-04-27. Retrieved 3 September 2016.
  33. "Accel-KKR Group Sells Web Hosting Giant Endurance International for $1 Billion - Web Host Industry Review". Retrieved 3 September 2016.
  34. "AmerisourceBergen Buys Chemo I.T. Vendor IntrinsiQ". 2011-09-06. Retrieved 2 October 2016.
  35. "Zillow's Purchase of ShowingTime Closes," HousingWire, retrieved January 26, 2023.
  36. "WorkWave to acquire TEAM Software," Lawn&Landscape, retrieved January 26, 2023.
  37. "Ektron President Fesses Up To Selling The Company To Accel-KKR". 5 December 2014.
  38. "EPiServer and Ektron combine to create the most complete digital experience platform in the cloud".
  39. "Episerver and Ektron merge". KMWorld. Information Today Inc. Retrieved Jan 27, 2015.
  40. Seebacher, Noreen. "Told You So: Ektron is Merging with Episerver". CMSWire. Simpler Media Group, Inc. Retrieved Jan 27, 2015.
  41. Backaitis, Virginia. "Not a Rumor: Accel-KKR Invests in Episerver". CMSWIre. Simpler Media Group, Inc. Retrieved Dec 8, 2014.
  42. Stern-Peltz, Mikkel (9 December 2014). "IK sells EPiServer to Accel-KKR". Unquote. Mergermarket Limited. Retrieved Dec 9, 2014.
  43. "Insight Venture Partners Invests in Episerver". ACCEL KKR. 6 September 2018. Retrieved 7 February 2023. Episerver, the company transforming digital experiences, today announced it has reached a definitive agreement to be acquired by Insight Venture Partners, a New York based global private equity firm focused on high-growth investments in the technology sector, in a transaction valuing Episerver at USD $1.16 billion.

Further reading
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