KKR’s Prisma Capital Partners acquisition on track to close in October
KKR has confirmed that all necessary consents and regulatory approvals to acquire Prisma Capital Partners have been obtained and that the closing is anticipated to occur in October 2012.
KKR announced its agreement to acquire Prisma, a provider of customised hedge fund solutions, on 18 June 2012.
“We are pleased with Prisma’s performance and business momentum since announcing the transaction in June and we appreciate the support from Prisma’s clients. We believe that the combination of Prisma’s deep investment capabilities and KKR’s global footprint will create a unique offering in the market, and we look forward to Prisma becoming part of KKR,” said co-founders and co-chief executives Henry Kravis (pictured) and George Roberts.
As of 1 September 2012, Prisma had USD8.1bn in assets under management, which is Prisma’s highest level of AUM in its history and represents an increase from its USD7.8bn of AUM as of 1 April 2012. Since the announcement in June, investors have funded or awarded new mandates in excess of USD650m, including several additional allocations from existing investors. In addition, virtually 100 per cent of Prisma’s clients have opted to continue to entrust management of their assets to Prisma following the transaction and the firm has seen redemption requests of less than one per cent of AUM since the announcement, lower than the last four quarters.
“We recognise that our investors expect us to continue to deliver the same or better levels of investment performance and investor servicing as we always have, and I am confident that we can deliver on those expectations,” says Girish Reddy, co-founder and chief executive of Prisma.
Upon the closing of the transaction, Prisma’s investment operations and processes will remain the same. Reddy will assume leadership for KKR’s global hedge fund of funds effort. Prisma co-founders Thomas Healey and Gavyn Davies will become senior advisors to KKR. As part of the transaction, all employees have agreed to stay with Prisma after the acquisition and Prisma will continue to operate under the Prisma brand.
“The Prisma platform remains one of the strongest in the industry and we look forward to having everyone join our team. They have a stellar track record of investing, consistently performing in the top quartile and are well known for providing customised solutions to clients,” says Scott Nuttall, head of global capital and asset management at KKR.
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