HgCapital Trust PLC
06 October 2026
Hg, the Manager of HgCapital Trust plc ("HgT"), today announces a full exit of Gen II Fund Services, LLC ("Gen II"), a global leader in private capital fund administration, to KKR.
The terms of the transaction have not been disclosed.
HgT, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all Hg's investments.
This transaction values HgT's investment in Gen II at approximately £71 million. This would represent an uplift of £18 million (34% or 4.0 pence per share) over the carrying value of £53 million in the pro-forma Net Asset Value ("NAV") of HgT at 31 August 2026.
Note that these figures only relate to HgT's share of Hg's overall investment in Gen II.
Based on the 31 August pro-forma NAV, the new pro-forma NAV of HgT is expected to be £2.4 billion (or 529.5 pence per share).
HgT's liquid resources available for future deployment (including all announced transactions, the interim dividend payable in October 2026, and the available balance on the bank facility) are estimated to be £347 million (14% of the 31 August pro-forma NAV of £2.4 billion).
HgT's outstanding commitments to invest in Hg transactions are approximately £2.0 billion (82% of the 31 August pro-forma NAV).
KKR to Acquire Gen II Fund Services for More Than $5 Billion from Hg and General Atlantic
NEW YORK, October 6 - KKR, a leading global investment firm, today announced the agreement to acquire Gen II Fund Services, LLC ("Gen II"), a global leader in private capital fund administration, for a total enterprise value of $5.1 billion. KKR is acquiring Gen II from Hg, General Atlantic and other minority investors through its Core Private Equity strategy. Led by CEO Steven Millner, Gen II has built an experienced leadership team that will continue to lead the company.
The strategic partnership with KKR is intended to support Gen II's next phase of growth as private market managers increasingly seek scaled, technology-enabled solutions to navigate more complex fund structures, investor needs and regulatory requirements. KKR plans to work alongside Gen II's management team to support the company's continued expansion in the U.S. and internationally, broaden its capabilities across asset classes and services and invest further in proprietary technology and AI-enabled solutions. KKR also plans to help implement a broad-based employee ownership program, giving all Gen II employees the opportunity to participate in the company's future growth.
Gen II is a leading fund administrator serving the private markets industry, providing fund administration services to more than 275 investment managers representing over $2 trillion in assets, alongside a growing suite of tax, compliance, treasury and technology-enabled solutions. Gen II was founded in 2009 by Steven Millner, Steven Alecia and Norman Leben, and has built a 17-year track record of service excellence and strong client retention.
General Atlantic and Hg co-led an investment in Gen II in 2020. Since then, the company has expanded its U.S. and European footprint, broadened its offerings and quadrupled revenue and EBITDA through strong organic growth and four strategic acquisitions.
"Gen II is exactly the type of financial services business we look for - a sophisticated sector leader with exceptional client relationships and a differentiated service model," said Chris Harrington, Partner at KKR. "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. We see significant opportunity to support the team as they expand globally and deepen their capabilities."
"At Gen II, our mission is to provide private markets managers with industry-leading fund administration delivered with unmatched client service and responsiveness," said Steven Millner, Co-Founder and CEO of Gen II. "KKR's ownership culture and long-term approach align perfectly with our vision for the future. 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 to serve our clients."
Justin von Simson, Partner and Stefanie Raiola, Director at Hg, said: "Gen II has become one of the most respected platforms in private capital administration, and we're proud of the role we've played alongside management and General Atlantic. Together we built a leadership team equipped to run a much larger, global business, and partnered on four acquisitions that took Gen II into new sectors, asset classes and services. Our value creation team worked closely with the business on its commercial strategy and the build-out of its Digital Solutions suite, including the launch of its GenVū client portal. We also drove AI and automation across client onboarding and bank reconciliations, capabilities now led by Gen II's own team. KKR is a natural home for Gen II's next chapter, and we wish the team every success."
Aaron Goldman, Managing Director, Global Head of Enterprise Technology and Caroline Woodworth, Managing Director, Head of Financial Services for EMEA at General Atlantic, said: "In Gen II, we saw a business with deep client relationships, an ambitious team and a culture of innovation and growth. Over the past six years, together with Hg, we have partnered closely with Steve and the management team to develop Gen II from a founder-led partnership into a true global platform. We have worked alongside the team on transformative strategic acquisitions that expanded Gen II's international footprint and broadened its service offering, invested in product and technology advancements and opened our network to introduce new managers to the business. Today, Gen II is a trusted partner to many of the world's largest GPs, and we look forward to seeing the team build on this progress as the company enters its next phase of growth with KKR."
KKR has extensive experience investing in and growing leading financial services businesses, reflected most recently with USI Insurance Services, which KKR announced an agreement to sell subject to closing conditions, and Integrated Specialty Coverages (ISC), which KKR exited in 2025. The firm has followed the fund administration sector for years and sees strong cultural alignment with Gen II's entrepreneurial, growth-oriented approach.
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in 2027.
Simpson Thacher & Bartlett LLP served as legal advisor to KKR. Morgan Stanley & Co. LLC, Robert W. Baird and UBS Investment Bank acted as financial advisors to the sellers, and Kirkland & Ellis LLP acted as legal advisor to the sellers.
For further information, please contact:
HgCapital Trust Laura Dixon
laura.dixon@hgcapital.com
+44 78 2459 2894
George Crowe
george.crowe@hgcapital.com
+44 77 7461 7150
Cadarn Lucy Clark
lucy@cadarncapital.com
+44 79 8418 4461
David Harris
david@cadarncapital.com
+44 73 6888 3211
Hg Tom Eckersley
Sam Ferris
About HgCapital Trust plc
HgCapital Trust plc is an investment company whose shares are listed on the London Stock Exchange (HGT.L). HGT gives investors exposure, through a liquid vehicle, to a portfolio of high-growth unquoted companies, managed by Hg, an experienced and well-resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors.
For further details, see hgcapitaltrust.com and hgcapital.com
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