Global investment firm KKR has agreed to acquire Gen II Fund Services, a leading private capital fund administrator, for a total enterprise value of $5.1 billion. The deal, announced on October 5, deepens KKR's push into the infrastructure that underpins private markets.
KKR is buying Gen II from Hg, General Atlantic and other minority investors through its Core Private Equity strategy. The transaction includes debt and is expected to close in 2027, subject to customary closing conditions and regulatory approvals.
A scaled platform serving $2 trillion in assets
Gen II is one of the largest independent private capital fund administrators, providing fund administration, tax, compliance, treasury and technology services to more than 275 investment managers representing over $2 trillion in private-fund capital.
The company was founded in 2009 by Steven Millner, Steven Alecia and Norman Leben. Millner, the co-founder and CEO, will continue to lead the company under KKR's ownership, alongside the existing leadership team.
Hg and General Atlantic co-led an investment in Gen II in 2020. Since then, the company has expanded its footprint across the United States and Europe, broadened its service offerings and quadrupled revenue and EBITDA through organic growth and four strategic acquisitions.
KKR's growth playbook
KKR says it plans to support Gen II's continued expansion in the U.S. and internationally, broaden its capabilities across asset classes and services, and invest further in proprietary technology and AI-enabled solutions. The firm also plans to implement a broad-based employee ownership program, giving all Gen II employees a stake in the company's future growth.
The acquisition extends KKR's recent activity in businesses that support private markets. In May, KKR acquired Arctos, an investment firm serving alternative asset managers and sports franchises, in a deal initially valued at about $1.4 billion. KKR has also been active in financial services more broadly, including an announced sale of USI Insurance Services and its 2025 exit from Integrated Specialty Coverages.
The deal reflects continued consolidation around the back-office infrastructure of private capital, as fund managers turn to scaled, technology-driven administrators to handle increasingly complex fund structures, investor demands and regulatory requirements.
Sources: Reuters: KKR to buy fund administrator Gen II in $5.1 billion deal KKR press release via Business Wire: KKR to Acquire Gen II Fund Services dpa-AFX via TradingView: KKR agrees to buy Gen II for $5.1 billion
KKR is buying Gen II from Hg, General Atlantic and other minority investors through its Core Private Equity strategy. The transaction includes debt and is expected to close in 2027, subject to customary closing conditions and regulatory approvals.
A scaled platform serving $2 trillion in assets
Gen II is one of the largest independent private capital fund administrators, providing fund administration, tax, compliance, treasury and technology services to more than 275 investment managers representing over $2 trillion in private-fund capital.
The company was founded in 2009 by Steven Millner, Steven Alecia and Norman Leben. Millner, the co-founder and CEO, will continue to lead the company under KKR's ownership, alongside the existing leadership team.
Hg and General Atlantic co-led an investment in Gen II in 2020. Since then, the company has expanded its footprint across the United States and Europe, broadened its service offerings and quadrupled revenue and EBITDA through organic growth and four strategic acquisitions.
KKR's growth playbook
KKR says it plans to support Gen II's continued expansion in the U.S. and internationally, broaden its capabilities across asset classes and services, and invest further in proprietary technology and AI-enabled solutions. The firm also plans to implement a broad-based employee ownership program, giving all Gen II employees a stake in the company's future growth.
The acquisition extends KKR's recent activity in businesses that support private markets. In May, KKR acquired Arctos, an investment firm serving alternative asset managers and sports franchises, in a deal initially valued at about $1.4 billion. KKR has also been active in financial services more broadly, including an announced sale of USI Insurance Services and its 2025 exit from Integrated Specialty Coverages.
The deal reflects continued consolidation around the back-office infrastructure of private capital, as fund managers turn to scaled, technology-driven administrators to handle increasingly complex fund structures, investor demands and regulatory requirements.
Sources: Reuters: KKR to buy fund administrator Gen II in $5.1 billion deal KKR press release via Business Wire: KKR to Acquire Gen II Fund Services dpa-AFX via TradingView: KKR agrees to buy Gen II for $5.1 billion
