Gen II Fund Services has secured a strategic investment from a consortium, including private equity firm General Atlantic, as it looks to significantly expand its fund administration services.
In addition to General Atlantic, technology firms Hg and IHS Markit also took part in the investment.
Under the deal, the Gen II founders and management team will continue to hold a significant investment in the company whilst continuing to lead the business.
In a joint statement from Gen II co-founders Steven Millner, Steven Alecia and Norman Leben, it was state that the involvement of the three firms will support the fund admin’s goal to expand its capabilities and reach for global private equity managers.
“Our new investors each bring game-changing expertise to our firm and our clients. General Atlantic brings 40 years of global growth equity investing and will be superb advisors as we expand our capabilities and reach. Hg, the largest software investor in Europe, brings deep software and service business intelligence that we will leverage to help refine our products. And IHS Markit, developers of WSO Software and iLEVEL, brings technology, analytics and product expertise that will help us transform the features and performance of our platform. This is a powerhouse combination,” the trio said.
Founded in 2009, Gen II has become a leading provider of alternative asset fund administration services. Servicing out of New York and Luxembourg, the company administers over $375 billion of private capital on behalf of its clients across more than 500 funds and their 25,000 investors, spanning various investment strategies including buyout, infrastructure, energy, real estate, fund of funds, credit and retail.
“We are thrilled to partner with Gen II in its next phase of growth. Under the leadership of Steven, Steven and Norman, the business has become a critical player across the full fund lifecycle of the alternative asset ecosystem. We see significant potential to help drive market expansion across a growing global base of GPs and their investors,” added Gabriel Caillaux, co-president, managing director and head of EMEA, General Atlantic.
According to Preqin’s latest ‘Service Providers in Alternative Assets’ report, Gen II was ranked among the top five service provider for private equity funds closed from 2019 through the first half of 2020, and was also the top provider selected by funds of $1 billion or more.
Last month, the firm hired GC Legend Robert Caporale as its new head of strategic business development. In the role, Caporale will focus on developing strategic client partnerships and acquisition opportunities.