KKR Agrees to $5.1 Billion Acquisition of Gen II Fund Services

New York — KKR has agreed to acquire Gen II Fund Services in a $5.1 billion transaction including debt, strengthening its presence in the infrastructure that supports private-market investors.

Gen II provides services to private equity, private credit and other private-market managers, with offerings that include tax, compliance, treasury and technology services.

The company serves more than 275 investment firms representing more than $2 trillion in private-fund capital, giving the acquisition broad exposure across the private investment industry.

KKR will acquire Gen II from Hg, General Atlantic and other minority investors. Hg and General Atlantic invested in the fund administrator in 2020.

Gen II co-founder and CEO Steven Millner will continue leading the company after the acquisition, according to KKR.

The transaction is expected to close in 2027, subject to completion of the required process.

The acquisition adds to KKR’s expansion into businesses that provide services to the growing private-capital ecosystem. Instead of directly targeting operating companies, the deal gives KKR exposure to infrastructure and services used by firms managing private-market assets.

The transaction follows KKR’s acquisition of Arctos in May. Arctos provides capital solutions to alternative asset managers and invests in sports franchises, and its deal was initially valued at about $1.4 billion.

Gen II’s broad client base and specialized offerings position it within the operational infrastructure private-market managers rely on to administer funds and meet regulatory and financial requirements.

The acquisition therefore adds another company serving alternative investment managers to KKR’s portfolio.

At $5.1 billion including debt, the Gen II transaction represents a notable private-market deal and underscores continued investment in the financial infrastructure supporting private capital.

With Millner staying on as CEO and closing expected in 2027, Gen II will continue under its existing leadership as it becomes part of KKR’s broader investment platform.