KKR's High-Stakes Bet on OneStream: A Blueprint for Private Equity Value Creation in Tech

In the ever-evolving landscape of private equity, KKR's strategic investment in OneStream Software stands out as a masterclass in value creation through high-conviction technology bets. The firm's 2019 acquisition of the corporate performance management (CPM) software provider has since delivered a staggering 4.5 times return, with a projected 24.9% gross internal rate of return (IRR) following Hg's $6.4 billion take-private deal in 2026. This outcome not only underscores KKR's ability to identify and scale innovative tech platforms but also highlights the explosive growth potential of the enterprise software sector.

Strategic Investment and Financial Returns

KKR's initial investment in OneStream was anchored in the company's position as a leader in cloud-based CPM solutions, a niche but critical segment of the enterprise software market. By 2024, OneStream had gone public, and KKR had already realized $2.3 billion in proceeds from the latest take-private transaction, with total exit proceeds reaching $2.8 billion. The $24.00-per-share buyout price-a 31% premium over its January 2026 closing share price-reflects the market's confidence in OneStream's scalability and recurring revenue model.

This success aligns with KKR's broader private equity strategy, which emphasizes partnering with founders to unlock operational and financial synergies. For instance, the firm's 2021 $200 million funding round for OneStream catalyzed 86% annual recurring revenue (ARR) growth in 2020 and over 200% bookings growth in Q1 2021. By 2025, OneStream's total revenue had surged to $600 million, with subscription revenue growing at a 25% annual rate.

Market Dynamics Driving Enterprise Software Growth

OneStream's trajectory is emblematic of broader trends in the enterprise software sector. The global market, valued at $263.79 billion in 2024, is projected to reach $517.26 billion by 2030, driven by digital transformation and cloud adoption. Specifically, the CPM software segment-where OneStream operates-is expected to grow from $9.53 billion in 2024 to $25.51 billion by 2032, at a 13.1% compound annual growth rate (CAGR). Key drivers include demand for data-driven decision-making, regulatory compliance, and the cost-effectiveness of cloud-based solutions, which already account for over 55% of the enterprise software market.

OneStream's international expansion further illustrates this momentum. In Q3 2025, the company reported a 37% year-over-year increase in international revenue, reflecting its ability to capitalize on global digitalization trends.

KKR's Tech Investment Philosophy

KKR's success with OneStream is not an isolated case but part of a deliberate, long-term strategy to invest in high-margin, innovation-driven tech firms. The firm's portfolio includes other transformative plays, such as o9 Solutions, which leverages AI for supply chain optimization. KKR's approach prioritizes "capital-light" models, where private equity firms deploy capital to enhance operational efficiency and scalability rather than relying on traditional leveraged buyouts.

This philosophy is validated by KKR's Core Private Equity strategy, which has delivered 16% annualized revenue growth and 18% annualized EBITDA growth since 2018. The firm's focus on small-to-midsize enterprises with strong cash generation-such as OneStream-enables it to navigate macroeconomic volatility while capturing upside from technological disruption.

Implications for Private Equity and Tech Investing

KKR's OneStream investment offers a blueprint for private equity's role in the tech sector. By aligning with visionary founders and leveraging market tailwinds, private equity firms can transform niche software providers into industry leaders. The deal also underscores the importance of patience and strategic execution: KKR's 2019 investment matured into a $6.4 billion exit over seven years, demonstrating the value of long-duration capital in high-growth tech markets.

As enterprise software continues to redefine business operations, private equity's ability to identify and scale innovative platforms will remain a key driver of returns. For investors, the OneStream case reaffirms that high-conviction bets on technology-when paired with operational expertise and market insight-can yield extraordinary outcomes.