KKR Seals $3B Tech Growth Fund III: Major Bet on Enterprise Digital Transformation

KKR has officially wrapped up its third iteration of the Next Generation Technology Growth Fund (NGT III), pulling in nearly $3 billion to fuel growth-stage tech investments across North America, Europe, and Israel. This move underscores the firm’s deepening commitment to the technology growth equity space at a pivotal moment for digital transformation.

The Scale and Strategic Timing

The $3 billion fund represents KKR’s most substantial commitment to tech growth equity to date, succeeding its earlier NGT I and NGT II vehicles. The timing is telling—enterprises worldwide are racing through digital transformation, AI applications are evolving rapidly, and technology adoption in consumer behaviors continues accelerating. This convergence has created fertile ground for emerging growth tech companies to scale quickly and sustainably.

Dave Welsh, KKR Partner & Global Head of Tech Growth, framed it directly: “Even in challenging market environments, investing in technology that solves real business problems creates long-term performance opportunities. Innovation is the critical driver we’ve consistently seen deliver returns.”

Capital Deployment and Investor Backing

KKR itself is deploying approximately $435 million into NGT III through its balance sheet, affiliates, and employee commitments—demonstrating genuine skin in the game. The fund attracted broad investor participation, including public pension plans, sovereign wealth funds, insurance companies, financial institutions, endowments, and family offices, reflecting strong confidence in the strategy.

Track Record Speaks Volumes

The firm isn’t entering this space untested. Since 2014, KKR has invested over $21.6 billion across technology-focused growth companies, building a global team exceeding 35 investment professionals specializing in tech growth equity. Previous exits and holdings demonstrate the firm’s ability to identify and scale category leaders in enterprise software, cybersecurity, and digital infrastructure.

The Thesis: Enabling Digital Operating Models

KKR’s regional leads—Jake Heller (Americas), Stephen Shanley (Europe)—emphasize a common thread: entrepreneurs are building sustainable, defensible business models around helping enterprises modernize operations, enhance customer service, and strengthen security. The fund targets companies advancing this digital operating model shift, positioning them to benefit from organizations’ deepening technology reliance.

This is less about chasing AI hype and more about backing the infrastructure and applications enabling enterprises to actually execute their transformation roadmaps. For KKR’s LP base, NGT III represents a directional bet that technology adoption cycles remain secular tailwinds—recession or not.