KKR adds $7.8bn of assets under management with Prisma purchase


Global buyout firm KKR has boosted its assets under management by 12.5 per cent by acquiring fund of hedge funds manager Prisma Capital Partners.

Prisma was founded by former Goldman Sachs partners Girish Reddy (pictured), Thomas Healey and Gavyn Davies in 2004, and had $7.8bn under management at the beginning of April.

KKR said the Prisma team would become part of its public markets segment following the purchase, the terms of which were undisclosed.

Reddy will run KKRs global hedge fund of funds efforts, while Healey and Davies will join the firm’s growing army of senior advisors.

KKR confirmed all cash proceeds received by the management under the deal would be reinvested in Prisma funds.

KKR co-founder and co-CEO Henry Kravis said, “Prisma has a superb track record of investing, consistently performing in the top quartile and we have come to know the management team well over the last two years.

“Many institutional investors are seeking more liquid alternative investment products, and we believe customized hedge fund solutions play a key role in meeting that need.

“This makes Prisma a good fit for KKR and we’re pleased to welcome the team.”

Fellow co-CEO and co-founder George Roberts said, “Prisma’s platform remains one of the strongest in the industry, with an investment team that has an average of 24 years of experience and no professional turnover in the last five years.

“This team has generated strong investment results through a deep understanding of the managers they invest in and an intense focus on risk management.

“The business also has never ‘gated’ its clients, has consistently added clients and doubled its assets under management over the past two and a half years.”

AEGON will sell its minority stake in the firm as part of the transaction but will remain a “significant” investor in Prisma’s funds, KKR said.

The deal comes two weeks after Prisma was tasked with running $200m of the Louisiana State Employees’ Retirement System’s portfolio, beating Blackstone and Permal to the deal.

Earlier this week KKR announced it had hired former Central Bank of Brazil governor Henrique Meirelles as its first representative in the booming country.

Meirelles, the latest in a string of high-profile special adviser appointments by the firm, will handle its business development efforts in Brazil and Latin America.

Copyright © 2012 AltAssets