Private capital fund administrator Gen II is exploring a potential $6bn sale later this year, according to people familiar with the matter. The New York-based firm, which administers over $1.5tn in assets across private equity, private credit and real assets, is backed by General Atlantic and European investor Hg.

A sale would test investor appetite for back office service providers, a sector that has attracted significant private equity interest recently. Permira's £2.7bn acquisition of JTC and Cinven's €4.9bn purchase of Alter Domus demonstrate strong demand. The French buyout group Astorg has also explored options for IQ-EQ.

Gen II serves 14,000 fund entities and offers tax services and compliance solutions. Founded in 2009, the company expanded through acquisitions including Quilvest Luxembourg Services in 2019. Its founders and management team remain significant shareholders after the 2020 investment round.

For Gen II's backers, a sale would provide needed liquidity. Private capital investors face pressure to exit older positions and return cash to their own investors. Neither Gen II nor its shareholders commented on the potential transaction.