KKR is about to invest $2.2 billion in fast-growing tech companies - Business Insider

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The KKR exec heading a new $2.2 billion investing push in fast-growing tech companies says he's looking far beyond Silicon Valley because valuations there can get crazy

One might expect a private-equity firm that just raised billions of dollars to invest in fast-growing technology companies to focus on the highest-profile tech hubs for prospective targets.

Dave Welsh, head of KKR's technology, media, and telecom growth-equity unit, said the firm will explore investment opportunities in areasuch as Florida, the greater Washington, D.C., area and Atlanta, as well as the Rocky Mountain region in Colorado and other regions throughout the Midwest. Just last year, Blackstone recruited one of the top executives at the growth equity firm General Atlantic, to launch a new fund for the firm, called Blackstone Growth Equity. There,While KKR's growth-equity division has a few tech portfolio companies in the Bay Area, Welsh said that most of the companies it has invested in are not in Northern California because of the fierce competition for talent there, as well as valuations that "can get crazy.

Welsh joined KKR in 2016 from Adams Street Partners to focus on growth-equity investing and works on a team alongside 19 investment professionals. "Now, every major university has big engineering programs," said Welsh. "Any city that has a major university or two around it can have good tech talent." At the same time, private-equity investment dollars have been pouring in from large investors, such as pension funds, sovereign wealth funds, and wealthy individuals, with the number of unused investor dollars in the PE industry ballooning into the trillions.

 

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