Wednesday 15 January 2020 4:19 pm

KKR raises $2.2bn for second next-gen technology growth fund

Investment firm KKR has closed its second Next Generation Technology Growth fund at $2.2bn (£1.7bn) — over three times the size of its predecessor. 

The fund will be dedicated to technology growth equity investment opportunities in Europe, North America and Israel, KKR said.

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The firm said it will invest over $265m of capital into the fund alongside investors including pension funds, insurance firms, and family offices.

The fund will target assets valued above $50m in areas including enterprise software, security, digital media, and fintech.

“We are thrilled to see the strong support from investors globally, both new and existing for our team, our commitment to this asset class, and our differentiated approach in the sector,” said KKR partner and head of its private markets products group Alisa Amarosa Wood.

The fund’s predecessor — KKR’s Next Generation Technology Growth Fund — was considerably smaller, closing in December 2016 at $711m.

New York-based KKR has invested $2.7bn in tech-focused growth companies and related investments since 2014.

The company has also built a dedicated team of 19 investment professionals to cover the area.

“When we initially set out to create a dedicated technology growth equity strategy over five years ago, we did so believing we could provide a truly differentiated approach to the market by leveraging the broader KKR platform and resources,” said KKR partner and head of technology growth equity, Dave Welsh.

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“Looking back on the businesses we’ve helped scale since and the strong returns we’ve delivered for our investors while doing so, we’re proud to continue to build on this momentum,” he continued.

“We look forward to investing behind the many more opportunities we see ahead to partner with best-in-class businesses in the technology growth sector.”