KKR announced an agreement to acquire Gen II Fund Services for $5.1 billion in enterprise value, purchasing the company through its Core Private Equity strategy with closing expected in 2027.
Gen II administers funds for over 275 investment managers representing more than $2 trillion in assets under administration. The company provides fund administration, tax, compliance, treasury, and technology services to the private capital ecosystem.
KKR is buying from current investors Hg and General Atlantic, along with other minority shareholders. The deal requires Hart-Scott-Rodino antitrust clearance and other customary closing conditions.
For KKR, the acquisition targets the structural tailwinds in private markets—a sector where fund administrators have become mission-critical service providers. Gen II's $2 trillion AUA base gives KKR direct exposure to fee growth as private capital deployment accelerates. The deal also locks in what KKR views as a strategic position in back-office digitization and AI implementation, areas where incumbents face rising operational costs and client demands for tech-forward solutions.
Gen II founder and CEO Steven Millner will remain in place. The company was co-founded in 2009 by Millner, Steven Alecia, and Norman Leben. General Atlantic and Hg led an investment in the company in 2020; since then, Gen II quadrupled revenue and EBITDA through organic growth and four acquisitions.
KKR said it will broaden Gen II's geographic and service footprint and accelerate investment in proprietary technology and AI-enabled solutions. KKR also plans to roll out a broad-based employee ownership program across the Gen II workforce.
"The company has become the gold standard in fund administration through its white-glove service model and founder-led culture and is well positioned to benefit from the structural growth of private markets," Chris Harrington, Partner at KKR, said.
Millner said, "Their resources and expertise will help our exceptional team capture the significant opportunities ahead to accelerate growth and continue to be at the forefront of our industry."
