New York based asset management firm KKR has raised $711m for their new growth equity technology fund. The fund, entitled Next Generation Technology Growth Fund, will aim to make deals in the $100m range.
The fund will be doing deals for tech companies in the “scaling” stage. Meaning, their technology is proven and they’re already disrupting legacy competitors. “The goal is simple: enterprise building,” Welsh says. KKR will occasionally use a small amount of debt in these deals. The fund has already done four deals: data analytics company Optimal+, travel booking site GetyourGuide, data integration startup Jitterbit and cybersecurity company Darktrace. Several of KKR’s best-known startup deals – Cylance, Magic Leap, Fanduel – were done outside of the fund. KKR’s selling point to startups is its network of portfolio companies. For example, KKR helped GoDaddy GDDY 1.58% , which made two acquisitions this week, identify M&A targets and expand internationally.