KKR to buy fund administrator Gen II in $5.1 billion deal including debt

KKR has agreed to acquire Gen II Fund Services for $5.1 billion, expanding its presence in the rapidly growing private-markets infrastructure sector. The deal, to be completed in 2027, is part of KKR's Core Private Equity strategy and involves purchasing Gen II from existing minority investors, including Hg and General Atlantic. Steven Millner, Gen II's CEO and co-founder, and the current leadership team will remain with the company post-acquisition.

Gen II currently provides fund administration and related services, including tax, compliance, treasury, and technology, to over 275 investment managers managing more than $2 trillion in assets. Founded in 2009, Gen II has since expanded its operations in both the U.S. and Europe. KKR plans to support Gen II's growth in the U.S. and internationally, broaden its service offerings across various asset classes, and invest further in cutting-edge technology, including AI-enabled solutions. A new employee ownership program is also in the works.

Gen II's expansion since the 2020 investment has been fueled by strong organic growth and the acquisition of four companies. Revenue and EBITDA have both quadrupled during this period. The company's technological capabilities include the GenVū client portal and AI-driven tools for onboarding and bank reconciliations. KKR sees Gen II as a strategic fit with its strategy of investing in financially-sound businesses with strong client relationships and long-term growth potential, particularly as private-market managers seek technology-enabled solutions to tackle increasingly complex fund structures, investor demands, and regulatory challenges.