KKR has agreed to acquire Gen II Fund Services from Hg, General Atlantic, and other minority investors for a total enterprise value of $5.1 billion. The acquisition is being made through KKR’s Core Private Equity strategy. Gen II provides fund administration services to more than 275 investment managers representing over $2 trillion in assets.
It also offers tax, compliance, treasury, and technology-enabled services. The company was founded in 2009 by Steven Millner, Steven Alecia, and Norman Leben. Millner remains CEO, and the current leadership team will stay in place.
Since Hg and General Atlantic co-led an investment in 2020, Gen II has expanded in the US and Europe, broadened its offerings, and quadrupled its revenue and EBITDA through organic growth and four acquisitions. KKR plans to support Gen II’s global expansion, enhance its capabilities across asset classes and services, and invest further in proprietary technology and AI. The firm also intends to establish a broad-based employee ownership program for all Gen II staff.
Chris Harrington, partner at KKR, stated the firm sees significant opportunity to support the team as they expand globally and deepen their capabilities. Justin von Simson, partner, and Stefanie Raiola, director, at Hg, noted they helped build a leadership team capable of running a much larger, global business and drove AI and automation across client onboarding and bank reconciliations. Aaron Goldman, managing director and global head of enterprise technology at General Atlantic, and Caroline Woodworth, managing director and head of financial services for EMEA, said they worked alongside the team on transformative strategic acquisitions that expanded Gen II’s international footprint and broadened its service offering, invested in product and technology advancements, and opened their network to introduce new managers to the business.
The deal is expected to close in 2027 and is subject to customary closing conditions and regulatory approvals. Simpson Thacher & Bartlett was legal adviser to KKR. Morgan Stanley, Robert W Baird, and UBS Investment Bank were financial advisers to the sellers, and Kirkland & Ellis was their legal adviser.
Source: PE Hub · Summarized by HeadlinesBriefing