Private equity firm KKR, which manages more than $95 billion in assets, has set aside $711 million for their Next Generation Technology Growth Fund (NGT). The fund will be used to invest in companies that specialize in technology, media, and telecommunications (TMT). The multinational corporation is currently focusing on prospects in North America, Europe, and Israel.
KKR, founded in 1976 by Henry Kravis, Jerome Kohlberg, and George Roberts, has quite the history when it comes to tech investments. Since 1983, the company has put over $18 billion towards TMT-related investments. KKR has poured an additional $640 million into NGT-related investments since 2014.
David Welsh, Managing Director and Head of TMT Growth at KKR, said that the firm is looking to create new market leaders through the NGT Fund.
“We believe we can offer a unique set of assets and resources to our partner companies,” Welsh stated. “In today’s evolving technology landscape, the combination of KKR’s global network, sourcing engine, value creation, and capital markets capabilities can help accelerate new market leaders. We look forward to leveraging our global footprint to build leading enterprises in technology while also aiming to deliver strong returns for our investors.”
Herald Chen, Co-Head of TMT in North America, and Philipp Freise, Head of TMT in Europe, are both in agreement that the newly set aside money will help foster leading-edge technology.
“Our overall approach to TMT is to identify platforms—management teams, businesses, and sectors—where we can invest to build leading global TMT enterprises, whether in private equity or now through our new growth fund,” the duo stated. “This strategy has served us well, and we look forward to building upon it further by helping more entrepreneurs take their companies to the next level.”
KKR’s NGT Fund has been supported by a variety of international investors, including public and corporate pensions, family offices, and high net worth individuals. There is no word yet on any specific companies that KKR will be backing.