Accel-KKR Completes $1.9 Billion Fund for Future Expansion
Accel-KKR, a renowned technology-focused investment firm, has made headlines with the successful closing of its latest continuation fund, totaling approximately $1.9 billion. This substantial financial vehicle is designed to boost the growth trajectory of isolved, a prominent provider of human capital management (HCM) software and solutions that address comprehensive employee lifecycle needs.
New Capital Commitment from Investors
The continuation fund, known as AKKR Isosceles CV LP, encompasses a notable commitment of $350 million in fresh capital. This investment will be strategically utilized to accelerate isolved’s growth through both organic initiatives and accretive acquisitions. Existing investors will also have the option for liquidity, illustrating a thoughtful balance between the needs of current stakeholders and the growth aspirations of the company.
Key Players and Institutional Involvement
Goldman Sachs Alternatives stepped in as the lead investor for this continuation fund, with a range of other institutional investors joining the effort. Accel-KKR's strategic capital fund, which raised $2.2 billion for software secondaries in the previous year, also has a stake in this new fund. This collaboration showcases strong institutional confidence in isolved's business model and future prospects.
Historical Context of Partnership
Accel-KKR has a long-standing relationship with isolved, having invested in the firm back in 2011. As part of the strategic plan, Accel-KKR launched the CV III Fund, a $1.4 billion multi-asset continuation vehicle, to facilitate the acquisition of isolved along with several other portfolio companies when their prior fund approached its term's end. This proactive strategy allowed isolved to pursue extensive growth, leading to a significant tripling of revenue and profitability.
Leaders Weigh In on Partnership Success
Tom Barnds and Rob Palumbo, Co-Managing Partners at Accel-KKR, expressed their enthusiasm about the successful closure of the fund, emphasizing the long-standing partnership that has spanned over 14 years. They remarked, "The revenue and EBITDA of isolved have expanded more than 20 times since our collaboration began, marking a truly remarkable journey together." Their optimism echoes the firm's commitment to supporting isolved’s continued success.
Future Growth Opportunities for isolved
Mark Duffell, the CEO of isolved, shared his excitement regarding the partnership with Accel-KKR, highlighting the exceptional collaboration between the two entities. As isolved embarks on its next phase, he envisions numerous opportunities, both organic and through acquisitions, positioning the company for future success.
Long-Term Growth Vision
Dean Jacobson, Managing Director at Accel-KKR, reiterated the firm’s confidence in isolved, stating their eagerness for continued investment as isolved pursues significant growth opportunities. This sentiment underscores Accel-KKR's strategy to remain actively engaged in enhancing the value of its portfolio companies.
Accel-KKR's Broader Investment Strategy
Since its inception in 2000, Accel-KKR has invested in approximately 500 technology companies and has established itself as a leader in the software and tech-enabled services sector. The firm has successfully raised 19 funds across various categories, focusing on middle-market companies and providing a spectrum of capital solutions. This longstanding history demonstrates Accel-KKR's commitment to driving growth for its partners and creating value within the tech industry.
About isolved
isolved stands out as a trusted leader in HCM technology. They offer a comprehensive suite of software and services tailored to meet the demands of today’s HR, payroll, and benefits professionals. With an extensive network, isolved supports over 7.7 million employees and 189,000 employers nationwide, focusing on enhancing productivity, decision-making, and performance while mitigating risks.
About Accel-KKR
Accel-KKR is committed to developing strong partnerships aimed at nurturing growth within software and tech-enabled businesses. With a cumulative capital of $23 billion, the firm strives to bolster middle-market companies through a variety of investment strategies, emphasizing collaboration with management teams to drive value creation.
Frequently Asked Questions
What is the purpose of the $1.9 billion fund by Accel-KKR?
The fund aims to accelerate isolved's growth through new capital for organic initiatives and acquisitions.
Who are the main investors in this continuation fund?
Goldman Sachs Alternatives is the lead investor, along with various institutional investors including Accel-KKR's strategic capital fund.
How has isolved performed under Accel-KKR's partnership?
During their collaboration, isolved has seen its revenue and EBITDA grow significantly, expanding more than 20 times since the partnership began.
What opportunities does isolved foresee for the future?
isolved is looking to grow both organically and through strategic acquisitions moving forward.
What is Accel-KKR's investment strategy?
Accel-KKR focuses on building strong partnerships in the software and tech sectors, supporting middle-market companies with a range of capital solutions.
