By Herald Chen Jun 10, 2016
Last week, Ping Identity – the leader in Identity Defined Security – announced an agreement to successfully sell the business. KKR’s TMT (Technology, Media, Telecommunications) team led Ping’s last growth equity investment round as part of the company’s product platform expansion and focus on the global corporate enterprise market. Since our investment, Ping’s annual recurring revenue grew by more than 40 percent in 2015, and today over 1,500 enterprises, including over half of the Fortune 100, have adopted the Ping Identity platform. We were pleased to have a strong partnership with the Ping management team, in particular Andre Durand, CEO and Founder, and Ping’s strong existing investors, including General Catalyst, W Capital, DFJ, Triangle Peak and Ten Eleven Ventures.
Consistent with our growth equity investing strategy, KKR was able to source an attractive risk-return investment and prove our ability to add value post-investment through the investment in Ping. We were able to assist Ping management with not only our capital, but importantly with strategic and tactical assistance to accelerate Ping’s growth and prospects to become a long-standing enterprise in the security infrastructure marketplace.
KKR’s investment in Ping centered on two primary premises. First, we believed behind Andre Durand, the company was well positioned to foster and benefit from the burgeoning Identity Defined Security market –an increasingly important market. Second, KKR had the tools to help scale Ping Identity into a large, profitable enterprise. KKR assets include a strong network for recruiting senior talent, 21 KKR offices around the world, a deep bench of senior advisors – former and current CEOs – as well as over 100 portfolio companies representing over $5 billion in annual IT spend.
KKR is invested in over a dozen other growth stage companies, where we are working hard to create new longstanding enterprises like Ping’s. For KKR, growth equity means focusing on market-leading, high-growth companies for which we can be a unique partner in helping a company reach scale and the next level of growth -- beyond just providing capital.
The specific portfolio company identified is not representative of all of the securities purchased, sold or recommended for advisory clients, and it should not be assumed that the investment in the company identified was or will be profitable. Senior Advisors, Industry Advisors, and KKR Advisors are engaged as consultants and are not employees of KKR.