KKR (NASDAQ: KKR) has agreed to acquire private-capital fund administrator Gen II Fund Services for an enterprise value of $5.1 billion, including debt, through a core private equity strategy.
KKR Acquires Gen II for $5.1 Billion
- Enterprise Valuation: The total transaction value reaches $5.1 billion, incorporating debt obligations.
- Scale of Operations: Gen II provides fund administration, tax, compliance, treasury, and technology-enabled services to over 275 investment managers representing more than $2 trillion in private-fund capital.
- Timeline and Leadership: The deal is expected to close in 2027, with co-founder and CEO Steven Millner remaining at the helm of the organization.
Gen II Revenue and EBITDA Quadruple Since 2020
The acquisition values Gen II following a period of expansion under its previous backers. Since Hg and General Atlantic invested in the firm in 2020, Gen II has quadrupled both its revenue and EBITDA through a combination of organic growth and four strategic acquisitions.
Hg Capital Trust plc (LON: HGT) announced a full exit of its investment in Gen II, valuing its specific stake at approximately £71 million. This figure represents a 34% uplift—or an increase of £18 million and 4.0 pence per share—over the carrying value of £53 million recorded in the pro-forma Net Asset Value of HgT at August 31, 2026. This transaction pushes HgT’s new pro-forma NAV to £2.4 billion, or 529.5 pence per share.
| Metric / Item | Details |
|---|---|
| Total Enterprise Value | $5.1 billion (including debt) |
| Assets Represented | Over $2 trillion across 275+ investment managers |
| HgT Stake Valuation | Approximately £71 million |
| HgT Valuation Uplift | 34% (£18 million increase over August 31, 2026 carrying value) |
| Expected Transaction Close | 2027 |
KKR Invests in Technology and Employee Ownership
KKR plans to implement a broad-based employee ownership program to give all Gen II workers a stake in the company’s future growth trajectory. KKR intends to invest directly in Gen II's technology and artificial intelligence capabilities while supporting its ongoing international expansion across U.S. and European markets.
Advisory roles for the transaction involved financial institutions Baird and UBS Investment Bank acting as financial advisors to the sellers, while Kirkland & Ellis LLP served as legal counsel to the sellers.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
