KKR to buy fund administrator Gen II for $5.1B
What's the deal? KKR has agreed to acquire Gen II Fund ServicesDealroom has a profile for this one. Try Dealroom →, a global fund administrator for private capital, for an enterprise value of $5.1 billion. The investment firm is buying Gen II from Hg, General Atlantic, and other minority investors through its Core Private Equity strategy. Chief executive officer Steven Millner and the existing leadership team will stay on.
What does Gen II do? Founded in 2009, Gen II provides fund administration to more than 275 investment managers representing over $2 trillion in assets. It also offers tax, compliance, treasury, and technology-enabled services.
Why now? Private market managers increasingly want scaled, technology-driven tools to handle complex fund structures, investor demands, and regulation. KKR plans to expand Gen II in the US and abroad, broaden its services, and invest further in proprietary technology and AI-enabled solutions.
What changes? KKR intends to set up a broad-based employee ownership program, letting all Gen II staff share in future growth.
The backstory: General Atlantic and Hg co-led an investment in Gen II in 2020. Since then, the company quadrupled revenue and EBITDA through organic growth and four acquisitions, expanding across the US and Europe.
What they're saying: "The company has become the gold standard in fund administration through its white-glove service model and founder-led culture," said Chris Harrington, a partner at KKR. Millner said KKR's "ownership culture and long-term approach align perfectly with our vision for the future."
The signal: The deal underscores the structural growth of private markets and the value investors now place on the infrastructure serving them. As fund structures grow more complex, the firms that administer them have become acquisition targets in their own right.
Read more: business.theantlersamerican.com
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