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TA sells stake in hedge fund K2 Advisors to Franklin Templeton

19 Sep 2012

Buyout house TA Associates has exited its investment in hedge fund K2 Advisors after a five-year holding period.

Asset manager Franklin Templeton Investments picked up TA’s share in the company and will wipe its debt as part of the transaction, although purchase details were not disclosed.

TA bought a minority stake in K2 when it had $5.5bn of assets under management, and has seen the company almost double that in the past five years.

The global hedge fund has 115 employees across the US, UK, Japan, Australia and Hong Kong, and approximately $9.3bn in assets under management as of the beginning of September.

K2 co-founder David Saunders said, “By joining forces with Franklin Templeton, we are solidifying our position as a leading fund of hedge funds manager in an evolving alternative investment landscape.

“This has been a management-led effort to seek out the best partner to replace TA.

“From the outset, we were attracted to Franklin Templeton’s established global presence and its extensive resources in distribution, operations and technology.

“Franklin Templeton’s network of portfolio managers, country heads on the ground and real-time information about global markets will be invaluable to K2 in executing our clients’ objectives.”

Three months ago global buyout firmKKR 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, 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.

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