KKR closes third Tech Growth Fund at nearly $3 bn

KKR, a global investment firm, today announced the final close of KKR Next Generation Technology Growth Fund III (NGT III), an approximately $3 billion fund focused on investing in leading growth technology companies across North America, Europe and Israel.

NGT III is the successor to the firm’s NGT I and NGT II growth funds. It continues KKR’s strategy of supporting high-growth technology companies by providing equity capital and access to the firm’s global capabilities and network, as per the statement.

The new fund comes at a time of accelerated digital transformation within enterprises globally, the next evolution of AI applications and the increasing adoption of technology in consumers’ daily lives. This has created an environment that will enable many new growth technology companies to emerge and scale, according to the statement.

“Even in challenging market environments, focusing on investing in technology that solves for the real needs of companies creates a long-term opportunity for performance. We’ve seen firsthand that innovation is a critical driver of investment returns,” said Dave Welsh, KKR Partner & Global Head of Tech Growth. “With the new fund, we are deepening our commitment to investing in leading companies that are advancing digital transformation by helping businesses operate and serve their customers better, and more securely.”

“KKR’s deep network of global resources has made us a partner of choice for some of the most innovative technology companies in the world, and our experience in the space has demonstrated a proven ability to add value and scale growing businesses,” said Jake Heller, Partner & Head of Tech Growth, Americas.

“Innovation across verticals coupled with organizations’ increasing reliance on technology has created an environment that is ripe for entrepreneurs to build sustainable and attractive business models. We see significant opportunity to continue partnering with the entrepreneurs leading these businesses and helping them achieve their growth ambitions,” said Stephen Shanley, Partner & Head of Tech Growth, Europe.

The Fund received strong support from a diverse group of both new and existing investors globally, including public pension plans, sovereign wealth funds, insurance companies, financial institutions, endowments, private wealth and fintech platforms, family offices and high-net-worth individual investors. KKR will be investing approximately $435 million of capital in the Fund alongside investors through the Firm’s balance sheet, affiliates and employee commitments.

KKR has established a proven track record of supporting technology-focused growth companies, having invested over $21.6 billion in related investments since 2014 and built a dedicated global team of more than 35 investment professionals with deep technology growth equity expertise. The Firm has executed several transactions as part of its tech growth strategy, including DarkTrace, KnowBe4, 09, Onestream, OutSystems, NetSPI and Restaurant365.

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