KKR to buy fund administrator Gen II Fund in $5.1bn deal
KKR has agreed to buy Gen II Fund Services, a provider of administration services to private capital funds, valuing the business at $5.1bn.
The acquisition will be made through KKR’s Core Private Equity strategy.
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Sellers include Hg, General Atlantic, and other minority shareholders.
Gen II chief executive Steven Millner will continue to lead the company.
KKR said it would work with the existing management team on Gen II’s expansion in the US and overseas, as well as on extending its services across asset classes.
The plans also include further investment in Gen II’s proprietary technology and AI-based tools.
KKR intends to support the introduction of an employee ownership scheme under which all Gen II employees could take part in the company’s future growth.
Gen II provides administration services to more than 275 investment managers with more than $2tn in assets. Its services also cover tax, compliance, treasury, and technology.
Millner founded Gen II in 2009 with Steven Alecia and Norman Leben. General Atlantic and Hg jointly led an investment in the company in 2020.
Since then, Gen II has increased its presence in the US and Europe, expanded its service range, and quadrupled revenue and EBITDA. The company’s growth included four acquisitions.
The transaction requires regulatory approval and the satisfaction of customary closing conditions. It is expected to complete in 2027.
Gen II co-Founder and CEO Steven Millner said: “KKR’s ownership culture and long-term approach align perfectly with our vision for the future. Their resources and expertise will help our exceptional team capture the significant opportunities ahead to accelerate growth and continue to be at the forefront of our industry to serve our clients.”
KKR has also invested in financial services companies including USI Insurance Services and Integrated Specialty Coverages. KKR has agreed to sell USI subject to closing conditions and exited ISC in 2025.
