KKR agreed to acquire Gen II Fund Services from Hg, General Atlantic and minority investors for an enterprise value of $5.1 billion. The New York-based administrator provides operational services to private-capital managers. KKR said it would make the investment through its Core Private Equity strategy. The transaction is expected to close in 2027, subject to customary conditions and regulatory approvals.
Gen II serves more than 275 investment managers representing over $2 trillion of private-fund capital. Its services include fund administration, tax, compliance, treasury and technology solutions. The company was founded in 2009 by Steven Millner, Steven Alecia and Norman Leben. Hg and General Atlantic co-led an investment in the business in 2020.
DEAL EXTENDS KKR INTO FUND ADMINISTRATION
The acquisition gives KKR ownership of a business supporting private-equity, private-credit, real-estate and infrastructure funds. Gen II said it has expanded in the United States and Europe and completed four strategic acquisitions under its current owners. KKR plans to support further international expansion, broader services and investment in proprietary technology and artificial intelligence.
Millner will remain chief executive and Gen II's management team will continue to lead the company. KKR also plans a broad-based employee ownership programme. The seller group includes Hg, General Atlantic and other minority investors, while the announced enterprise value includes debt.
CLOSING DEPENDS ON REGULATORY APPROVALS
The parties did not identify every approval required before completion. Simpson Thacher advised KKR, while Morgan Stanley, Baird and UBS advised the sellers. Kirkland & Ellis acted as legal adviser to the sellers. The agreement follows KKR's May acquisition of Arctos, another investment linked to private-market managers.
The purchase would deepen KKR's exposure to recurring services used by private-capital firms, rather than adding only another investment portfolio. Gen II's client base and assets administered make the deal material to the operational infrastructure around private markets. The next milestone is the completion of regulatory reviews and other closing conditions ahead of the expected 2027 closing.