Hellman & Friedman Retained UKG Investment for 19 Years
Private equity firms are increasingly extending asset holds beyond traditional fund lifecycles to drive returns.
Updated on Sept. 22, 2026 in Business Strategy
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Hellman & Friedman has maintained ownership of the company formerly known as Kronos Inc., now operating as UKG, for 19 years following an initial 2007 acquisition. This long-term hold represents a departure from the traditional 10-year private equity fund model.
Why it matters
The extended holding period reflects a broader trend among private equity firms to cycle assets through different funds rather than liquidating them within the standard decade-long timeline. This allows firms to maintain control of established assets while bypassing the immediate pressure of traditional exits.
Hellman & Friedman has held its investment in the company now known as UKG for 19 years, nearly doubling the 10-year traditional duration of a private equity fund. The firm retains this position by cycling the asset through different funds.
The players
Hellman & Friedman
A private equity firm focused on large-scale investments that maintains control over portfolio companies for extended durations.
UKG
Formerly known as Kronos Inc., this major human capital management software provider operates under the long-term ownership of its private equity backers.
JMI Equity
A private equity firm that participated in the 2007 acquisition of the entity now known as UKG.
The details
Private equity firms like Hellman & Friedman utilize fund-cycling strategies to extend ownership periods for successful assets. By moving an investment from one fund to a successor vehicle, firms can avoid a forced exit while continuing to manage the company's growth trajectory. This mechanism provides operational continuity for the portfolio company while keeping the investment within the private equity sponsor's purview.
Timeline
Hellman & Friedman and JMI Equity acquired Kronos Inc. in 2007.
The firm maintains its ownership of UKG as of 2026.
Market Landscape
This 19-year investment cycle marks a clear departure from the standard exit behavior defined by the traditional 10-year private equity fund model. It highlights a shift in private equity strategy where successful companies are increasingly managed through multiple fund iterations.
Operators should monitor whether their private equity-backed partners or competitors are employing similar fund-cycling strategies, which can signal a shift toward long-term operational stability rather than an imminent sale. This trend suggests that owners may face a consistent strategic direction from their financial backers for significantly longer durations than previously expected.
The takeaway
The move toward multi-fund asset retention indicates that private equity firms are prioritizing long-term value capture over traditional exit timelines. Business leaders should evaluate their own capital structure to determine if longer-term investment horizons offer more flexibility for scaling operations.
Further reading
For more on evolving ownership structures, read the Business Strategy section.
Source note: This article includes information reported by Bloomberglaw.
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