Accel-KKR
Accel-KKR is a benchmark investor in the US software sector. Its ability to replicate success across different economic cycles is due to rigorous pre-selection criteria and a strong commitment to the companies it invests in. Its extensive relationships, combined with its industrial sourcing methods, generate a significant flow of investment opportunities.
Companies
Strategy
Buyout
sectors
Technology and Software
-
geographies
Europe
-
North America
-
Rest of world
-
Vintages
Funds
Accel-KKR Buyout VII
-
23
years in existence
+320
completed operations
+125
people
4
offices worldwide
Accel-KKR was formed in 2000 as a partnership between two key players in American Private Equity: Accel, an American leader in venture capital, and KKR, a world leader in LBOs.
Since 2006, it has operated completely independently of its original sponsors, being managed and majority-owned by its two co-founders, Tom Barnds and Rob Palumbo.
Accel-KKR manages close to $15 billion in its Tech & Software-only strategies.
A disciplined approach to value strategy
- High-quality sourcing: an abundant proprietary deal flow based on existing relationships in the software world, direct approaches, and IT screening of the market.
- Strict pre-selection based on the "Rule of 40": According to this rule, the growth rate of annual revenues added to the company's profitability margin must be greater than, or equal to, 40%.
- Identification of undervalued assets: the price being defined by a combination of criteria, including growth rate, positioning and market size. These elements are compared with the very rich internal database, with a sample of hundreds of software companies.
An exclusive focus on the tech and software sectors for over 20 years
- More than 300 successful operations by our teams in a period of 20 years.
- A proven ability to replicate the best successes on target business models: products or services that are essential to users, recurring revenues through a subscription model, high operating margins, etc.
- Solid expertise in managing complex situations, including companies owned mainly by their founders, without intermediaries, and which have never before been backed by an investment fund.
A shareholder closely involved in managing transformation plans
- Operational support by an in-house consulting firm dedicated to portfolio companies (AKKR Consulting Group)
- Market consolidation through numerous M&A operations
- Financial improvements (structure, growth, margin rate, etc.)
AKKR is renowned for its proven ability to conduct ambitious transformation plans and for its very strong collaborative values.
Accel-KKR Buyout VII
select
geographies
North America, Europe, Rest of World
target sectors
Tech & Software
Diversification
15-20 investments
Enterprise value
> $100m
Investment ticket
> $50M
Role
Positions as majority shareholders
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