KKR & Co. has agreed to acquire Gen II, a leading administrator of private-capital funds, in a deal valued at about $5 billion, according to sources cited by The Wall Street Journal. The move would expand KKR’s presence in the back-office operations that support the private equity industry.
Gen II is one of the largest independent fund administrators. It provides services including accounting and regulatory compliance for private funds.
The acquisition would broaden KKR’s service offerings and add fee-related income, which could reduce its reliance on more volatile investment gains. The deal follows reports earlier this year that Gen II’s owners were exploring a sale.