KKR announced on October 5 that it has agreed to acquire Gen II Fund Services, a global leader in private capital fund administration, for a total enterprise value of $5.1 billion. KKR is buying Gen II from Hg, General Atlantic and other minority investors through its Core Private Equity strategy, with closing expected in 2027 subject to customary conditions and regulatory approvals.
Gen II provides fund administration, tax, compliance, treasury and technology services to more than 275 investment managers representing over $2 trillion in private-fund capital, plus a growing suite of technology-enabled solutions. Founded in 2009 by Steven Millner, Steven Alecia and Norman Leben, the company has a 17-year track record. General Atlantic and Hg co-led an investment in Gen II in 2020; since then the company has expanded across the United States and Europe, broadened its offerings and quadrupled revenue and EBITDA through organic growth and four strategic acquisitions.
Chief executive Steven Millner and the existing leadership team will continue to run the company. KKR said it plans to support expansion in the United States and internationally, broaden capabilities across asset classes, invest in proprietary technology and AI-enabled solutions, and implement a broad-based employee ownership program giving all Gen II employees a stake in future growth.
The deal extends KKR’s push into businesses that underpin private markets themselves. In May it acquired Arctos, which provides capital solutions to alternative asset managers, in a deal initially valued at about $1.4 billion. The Gen II transaction was also flagged in AltAssets’ October 6 deal roundup.