Accel-KKR Fund V raises $1.3 bln

Accel-KKR said Monday that it closed its fifth buyout fund with $1.3 billion in committed capital. Accel-KKR Capital Partners V LP will invest in lower-middle market and middle-market software and IT-enabled services companies. Fund V also includes a $100 million commitment from the firm’s general partners. PRESS RELEASE MENLO PARK, Calif., Sept. 28, 2015 /PRNewswire/ — Accel-KKR, a technology-focused private equity investment firm, today announced the official close of its fifth buyout fund with $1.3 billion in committed capital. The fund, Accel-KKR Capital Partners V LP (“Fund V”), will continue Accel-KKR’s long-term focused strategy of investing in lower-middle market and middle-market software and IT-enabled services companies. Accel-KKR said the fund received strong support from its investors in prior funds, as well as attracted a number of new investors. Commenting on the fund closing, Tom Barnds, Managing Director of Accel-KKR, said, “We are heartened by the support we received from our existing investors, and are quite pleased to welcome a number of new investors to the fund. The missions of our investors, who include leading academic institutions, medical research foundations, health care institutions, and corporate and government pensions, resonate deeply with the Accel-KKR team.” The firm formally went to market with Fund V in Spring 2015 and closed on its hard cap earlier this month. This brings Accel-KKR’s total committed capital to $4.0 billion across its current and previous funds. The new fund includes a $100 million commitment from the firm’s general partners. “We believe in strong alignment of interest with our limited partners,” commented Rob Palumbo, Managing Director of Accel-KKR. “One of the many ways we seek to achieve this alignment is by making very significant financial commitments to invest alongside of our limited partners.” The $100 millioncommitment represents the largest such general partner commitment in the firm’s history and also makes the general partner the largest investor in the fund. Accel-KKR invests through two different types of funds – its Buyout funds for majority ownership positions and its Growth Capital funds for minority ownership positions. Accel-KKR raised its second Growth Capital Fund in 2014 with $350 million of committed capital. Fund V also follows the firm’s fourth buyout fund, which it started investing out of in 2013 with $800 million of commitments. The firm has continued to expand its investment efforts outside of North America. In 2013, it opened a London office, and since 2013 the firm and its portfolio companies have acquired or invested in over eight technology companies in Europe. Accel-KKR has also expanded its investor base outside the United States, such that in Fund V over one third of the committed capital is from international investors. International investments continue to be an integral part of the firm’s strategy going forward. The close of Fund V also comes amidst a period of significant activity for Accel-KKR, in terms of new investments, add-on acquisitions by portfolio companies and realizations of investments. Recent new platform investments include: Motor Vehicle Software Corporation (MVSC)– Based in Agoura Hills, CA, MVSC provides innovative process management software for state government agencies and businesses including an electronic vehicle registration solution. Banker’s Toolbox– Based in Austin, TX, Banker’s Toolbox is a leading provider of Bank Secrecy Act anti-money laundering compliance and fraud prevention solutions for the financial industry. Five Accel-KKR portfolio companies made add-on acquisitions over the last several months, including: Oildex, a leader provided of revenue and expense management software to the oil and gas market, acquired the Procure-to-Pay (P2P) business of Automatic Data Processing. HighJump, a global provider of supply chain management solutions, acquired Wesupply, aUnited Kingdom-based provider of supplier enablement and B2B integration solutions. MEA|NEA, the leader in secure health information exchange for medical and dental providers, acquired The White Stone Group, Inc., a provider of healthcare communication management solutions. Kerridge Commercial Systems,a global provider of enterprise resource planning software to the distributive trades, acquired Dancik International, a provider of software to the flooring and tiling industries. Datapipe, a global leader in managed hybrid IT solutions for the enterprise, acquired DualSpark, an Amazon Web Services assessment, automation, and migration company. Accel-KKR has achieved a series of successful exits recently including: RiseSmart, the leading provider of contemporary career transition services, which was acquired by Randstad Holding nv. On Center Software, a leading construction automation technology company, which was acquired by Roper Technologies. Applied Predictive Technologies, a leading cloud-based analytics provider, which was acquired by MasterCard for$600 million. About Accel-KKR Accel-KKR is a technology-focused investment firm with $4.0 billion in capital commitments to its current funds. The firm invests primarily in software and IT-enabled businesses well-positioned for topline and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value through significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions from minority-growth investments to buyouts, recapitalizations, divisional carve-outs and going-private transactions. The firm has offices in Menlo Park, Atlanta and London. For more information, please visitaccel-kkr.com.

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Accel-KKR Fund V raises $1.3 bln

Energy Capital Partners seeks buyers for Summit Midstream stake: Bloomberg

(Reuters) — Private equity firm Energy Capital Partners is looking for buyers for its interest in Summit Midstream Partners LP (SMLP.N), a deal that would include a minority stake in the pipeline operator as well as ownership of its general partner, Bloomberg reported. The sale would also include some oil and gas gathering and processing operations in North Dakota, Colorado and Ohio owned by an affiliate of Summit Midstream, Bloomberg reported, citing people familiar with the matter. Energy Capital is working with Barclays Plc to find a buyer for the assets, which could fetch at least $2 billion, Bloomberg reported, citing one of the persons. Energy Capital owns about 44 percent limited partnership interest in Summit Midstream Partners LP through an entity called Summit Investments. The firm may also consider taking the assets public if offers are too low, the report said. Summit Midstream and Energy Capital were not immediately available to comment, while Barclays declined to comment. Texas-based Summit Midstream’s stock was down 12.6 percent at $18.71 in afternoon trading in a weak broader market.

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Energy Capital Partners seeks buyers for Summit Midstream stake: Bloomberg

Millennium Trust finds a buyer in Parthenon Capital

Parthenon Capital Partners agreed to buy Millennium Trust Company. Financial terms weren’t announced, though a banking source said the company sold for $150 million. A Millennium spokesman declined to confirm the price. Parthenon is buying a majority of the company, the spokesman said. Private individuals sold Millennium, the spokesman said, declining the identify the sellers. Oak Brook, Illinois-based Millennium Trust provides alternative custody solutions to institutions, advisers and individuals. The firm has 383,000 accounts under administration and more than $15.4 billion in total assets under custody, a statement said. The Millennium Trust auction generated much interested, PE HUB has reported. In fact, the firm received “over 20 bids” in the first round. Millennium is a high-growth, services-oriented business that is too small for strategics. In fact, no strategics made offers for Millennium, one banker said. Firms including Lightyear Capital, Aquiline Capital Partners, LLR Partners and Lovell Minnick Partners made offers for Millennium, banking and private equity sources said. “It was all PE firms,” the banker said. Rob Metzger, Phil Olson, Jon Skinner and Solange Velazquez of William Blair advised Millennium Trust. Founded in 1998, Parthenon Capital targets middle market companies in three sectors: financial services, healthcare services and business services. In July, Parthenon agreed to sell Altegra Health to Emdeon Inc. It invested in Stratose Inc. in June and said it would sell ASG Security to Apollo Global management in May. Parthenon raised $700 million with its fourth fund in 2012. Parthenon Investors IV LP is generating a 2.87 percent average IRR and 1.04x average multiple, according to data provider Bison. It’s unclear when the firm will launch its next fund. “]Parthenon] has been slow to draw down” its fourth fund, one placement agent said. Marketing for Fund V is “more likely out a year from now,” the source said. Executives for Lovell and Aquiline declined comment. LLR and LIghtyear couldn’t be reached for comment. Photo of Millennium Park in Chicago courtesy of Shutterstock

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Millennium Trust finds a buyer in Parthenon Capital