Accel-KKR has raised a third private equity fund of $600 million to invest in technology busineses.

The Accel-KKR Capital Partners III fund is a growth-oriented, middle-market tech fund. The fund was initially targeted at just $450 million and was significantly oversubscribed. Now two partners have more than $1 billion in assets under managemen.

The new fund’s investors include college and university endowments, corporate pension plans, foundations, insurance companies, investment advisors, state and government retirement systems and family offices.  All of Accel-KKR’s investors from its 2006 second fund participated in the third fund.

Tom Barnds, Managing Director of AKKR said the fundraising in a tough environment validates the strong results of the previous funds. The new fund will focus on mid-market companies across the tech industry, including software, Internet technologies and information-technology-enabled services. It will target deals with companies with $15 million to $150 million in revenues.