Key Takeaways
- • KKR agreed to acquire Gen II Fund Services, a global fund administrator for private capital, at an enterprise value of $5.1 billion, or roughly $5 billion including debt.
- • The sellers are a group led by Hg and General Atlantic, along with other minority investors. General Atlantic and Hg first invested in Gen II in 2020.
- • Gen II provides tax, compliance, treasury and technology services, primarily to buyout and other private-capital funds.
- • The transaction is expected to close in 2027.
- • Fund administrators are attractive to large investors such as KKR because they generate steady, growing fee income.
Summary
KKR has agreed to buy Gen II Fund Services, a fund administrator serving private-capital managers, in a transaction valuing the business at an enterprise value of $5.1 billion. KKR announced the deal on Tuesday, and The Wall Street Journal reported the agreement the previous day. The deal is expected to close in 2027.
According to reporting from the Wall Street Journal and Bloomberg-style coverage carried by syndicated outlets, KKR is acquiring Gen II from Hg, General Atlantic and other minority investors. Quartz described the seller group as led by Hg and General Atlantic, which first invested in the business in 2020.
Gen II provides outsourced tax, compliance, treasury and technology services to private-capital funds, with a focus on buyout strategies. Fund administration has become an area of interest for large alternative asset managers because the business generates recurring fee income that tends to grow with the assets under administration. For KKR, the acquisition extends its exposure to the infrastructure supporting private-markets funds rather than only the underlying investments.
According to reporting from the Wall Street Journal and Bloomberg-style coverage carried by syndicated outlets, KKR is acquiring Gen II from Hg, General Atlantic and other minority investors. Quartz described the seller group as led by Hg and General Atlantic, which first invested in the business in 2020.
Gen II provides outsourced tax, compliance, treasury and technology services to private-capital funds, with a focus on buyout strategies. Fund administration has become an area of interest for large alternative asset managers because the business generates recurring fee income that tends to grow with the assets under administration. For KKR, the acquisition extends its exposure to the infrastructure supporting private-markets funds rather than only the underlying investments.
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