Accel-KKR will help technology firm Singletrack extend its geographical footprint to the US, Phil Cunningham, managing director and lead of its Emerging Buyout Partners fund, told PE Hub Europe.
The firm announced a “significant” capital growth investment in Singletrack at the end of June. Accel-KKR declined to disclose the size of the commitment.
London-headquartered Singletrack provides services to capital markets participants via its client engagement, research management and analytics products. Founded in 2009, the AI-enhanced client engagement platform can be used across sales, trading, research, investment banking, operations, strategy, corporate access and compliance.
Accel-KKR believes that platform can be taken to a new continent. Cunningham said the firm was “well-regarded” in Europe, and especially in its UK home. “In conversations with Singletrack management, we saw that there are similar prospects in the US,” Cunningham said. “By tapping into Accel-KKR’s network and resources, the company is positioned to expand more efficiently than they could on their own.”
As the broader economy faces a downturn, Accel-KKR has identified advanced technology, namely AI and analytics, as crucial for capital markets. “The industry is at an inflection point: investment banks and other firms face regulation and competition pressures on the sell-side, and AUM growth and proliferation of investment services on the buy-side,” Cunningham explained.
“Against that backdrop, as a CRM platform purpose-built for capital market firms, Singletrack is leading the way in deploying advanced technology to become a one-stop, robust data-driven advisory platform so firms can deliver great client experience and maximise revenue,” he added.
While Cunningham could not go into specifics, the growth plans for Singletrack revolve around supporting the company’s organic and inorganic growth.
An advanced tech company such as Singletrack fits “perfectly” in Accel-KKR’s portfolio, according to Cunningham. The firm’s investment focus, backing software companies that provide mission-critical solutions and are led by experienced management teams, matched well with Singletrack. “We have been impressed by how they continue to grow and be successful at winning blue-chip buy-side and sell-side capital market clients,” he said. “This partnership with Singletrack reflects our ongoing commitment to and success in Europe backing good software companies in their quest to become global leaders in their fields.”
Cunningham said that the wider economic downturn could help buoy interest in Singletrack’s products. “Singletrack is poised to be even more critical as firms have to work even harder to create sticky relationships with and over-deliver on value for their clients, while driving efficiency internally,” he said. “We saw this scenario play out during covid.”