Kirkland Helps Accel-KKR Roll 4 Cos. Into New $1.4B Fund
Technology-focused private equity group Accel-KKR, working with Kirkland & Ellis, said Monday that it has clinched a $1.39 billion fund formed to acquire four portfolio companies from an earlier fund it's winding down.
The fund, billed as Accel-KKR Capital Partners CV III, is a "continuation vehicle" whose capital will be used to pay for the purchase of the four companies, which represent the remaining assets of Accel-KKR Capital Partners III LP, a $600 million investment fund that closed in September 2008, according to a statement.
About $1.16 billion has been directed to pay for the acquisition of the four companies, with $225 million earmarked for follow-on investments in the companies.
The four companies are Charlotte, North Carolina-based electronic bill-pay company Paymentus Corp; Charlotte-headquartered iSolved HCM, which provides workforce management software and services; Pittsburgh, Pennsylvania-based TrueCommerce, which makes software that connects retailers, distributors and logistics services providers; and Coldwater, Michigan-based Infinisource, which provides outsourced human resources and benefits services.
Tom Barnds, managing director for Accel-KKR, said in the press release that "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," Barnds added.
The investor base for the new continuation fund was led by Goldman Sachs Vintage Funds, GIC Pte. Ltd. and Adams Street Partners. It includes others, including some investors that contributed to the original 2008 fund. With their combined contributions, employees of Accel-KKR represent the largest investor in the new continuation fund.
Menlo Park, California-based Accel-KKR focuses on investments in software and IT-enabled businesses the firm believes are poised for strong growth. In the roughly 19 years it's been in business, the firm has raised more than $9 billion from limited partners and has invested in over 180 companies.
Evercore Partners served as financial adviser to the new fund, with Kirkland & Ellis serving as legal adviser.
The Kirkland team was led by Michael Belsley, Shelly Hirschtritt and Jeffrey Seifman.
The fund, billed as Accel-KKR Capital Partners CV III, is a "continuation vehicle" whose capital will be used to pay for the purchase of the four companies, which represent the remaining assets of Accel-KKR Capital Partners III LP, a $600 million investment fund that closed in September 2008, according to a statement.
About $1.16 billion has been directed to pay for the acquisition of the four companies, with $225 million earmarked for follow-on investments in the companies.
The four companies are Charlotte, North Carolina-based electronic bill-pay company Paymentus Corp; Charlotte-headquartered iSolved HCM, which provides workforce management software and services; Pittsburgh, Pennsylvania-based TrueCommerce, which makes software that connects retailers, distributors and logistics services providers; and Coldwater, Michigan-based Infinisource, which provides outsourced human resources and benefits services.
Tom Barnds, managing director for Accel-KKR, said in the press release that "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," Barnds added.
The investor base for the new continuation fund was led by Goldman Sachs Vintage Funds, GIC Pte. Ltd. and Adams Street Partners. It includes others, including some investors that contributed to the original 2008 fund. With their combined contributions, employees of Accel-KKR represent the largest investor in the new continuation fund.
Menlo Park, California-based Accel-KKR focuses on investments in software and IT-enabled businesses the firm believes are poised for strong growth. In the roughly 19 years it's been in business, the firm has raised more than $9 billion from limited partners and has invested in over 180 companies.
Evercore Partners served as financial adviser to the new fund, with Kirkland & Ellis serving as legal adviser.
The Kirkland team was led by Michael Belsley, Shelly Hirschtritt and Jeffrey Seifman.
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