KKR agrees to buy Gen II at a 5.1 billion dollar enterprise value
KKR has agreed to acquire fund administrator Gen II from Hg, General Atlantic and other investors at a 5.1 billion dollar enterprise value. The business serves more than 275 investment managers with over 2 trillion dollars in assets. Existing management is set to remain, while regulatory approvals and closing conditions still apply. HgCapital Trust estimates a higher value for its own stake under the transaction.
Economics & Markets··Evening
Gen II serves fund managers with over 2 trillion dollars in assets
Investment firm KKR agreed to acquire private-capital fund administrator Gen II from Hg, General Atlantic and other minority investors at a 5.1 billion dollar enterprise value.[1], [2]
Gen II serves more than 275 investment managers representing over 2 trillion dollars in assets. Its services include fund administration, tax, compliance, treasury and technology. The client-assets figure describes the capital administered for customers. KKR is making the purchase through its long-duration Core Private Equity strategy.[1]
Management is set to remain after the transaction
Co-founder and chief executive Steven Millner and the current management team are set to remain. KKR plans expansion in the United States and internationally, broader services across asset classes, investment in proprietary technology and an employee-ownership programme. Completion is expected next year, subject to regulatory approvals and customary closing conditions.[1]
HgCapital Trust estimates its stake at 71 million pounds
Hg and General Atlantic invested in Gen II in 2020. The announcement attributes a subsequent quadrupling of revenue and earnings before interest, tax, depreciation and amortisation to organic growth and four acquisitions. HgCapital Trust estimates its own investment at approximately 71 million pounds under the deal, compared with an August-end carrying value of 53 million pounds. The 18 million pound uplift is equivalent to 34 per cent, or 4.0 pence per share.[1]
