NEW YORK--(BUSINESS WIRE)--
KKR & Co. L.P. (NYSE: KKR), a leading global investment firm, today
announced an agreement to acquire Prisma Capital Partners LP ("Prisma"),
a leading provider of customized hedge fund solutions. The transaction
is expected to close in the fourth quarter 2012, and financial terms
were not disclosed.
Prisma was founded in 2004 by former Goldman Sachs partners Girish
Reddy, Thomas Healey and Gavyn Davies, and is focused on maximizing
returns by investing in the industry's most talented professionals.
Prisma is known for identifying specialist hedge fund managers with
exceptional track records and creating custom portfolios for clients. As
of April 1, 2012 Prisma had $7.8 billion in assets under management,
with more than 90% belonging to institutional investors.
The Prisma team will become part of KKR's Public Markets segment.
Co-founder and CEO Girish Reddy will run KKR's global hedge fund of
funds effort, working with KKR executives around the world to provide
broader investment solutions to clients. Prisma Co-founders Thomas
Healey and Gavyn Davies will become Senior Advisors to KKR. As part of
the agreement, all cash proceeds received by management at closing will
be reinvested in Prisma funds.
"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," said Henry Kravis, Co-Founder and Co-CEO of
KKR. "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."
George Roberts, Co-Founder and Co-CEO of KKR, added, "The Prisma
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 2 1/2 years."
"We're excited to add KKR's global view and industry expertise to our
already strong capabilities," said Girish Reddy. "We decided to join KKR
because we felt it would give us a unique advantage. Our job is to
generate strong returns for clients, and we believe KKR's knowledge,
talent and global footprint will help us continue to make sound
decisions and identify new opportunities for our investors."
As part of the transaction, AEGON will sell its minority stake in the
firm but remains a significant investor in Prisma's funds.
"AEGON has been instrumental in helping build our business and we look
forward to continuing our deep and long-standing partnership with them
as a client in the future," Reddy continued.
Upon the closing of the transaction, Prisma's investment team will
remain intact and core investment operations and processes will remain
the same. Prisma will continue to operate under the Prisma brand.
Goldman, Sachs & Co. served as exclusive financial advisor to Prisma and
AEGON in connection with the transaction. Schulte Roth & Zabel LLP
served as legal counsel to Prisma and AEGON. Simpson Thacher & Bartlett
LLP acted as lead legal counsel to KKR.
Prisma is a Registered Investment Adviser with the U.S. Securities and
Exchange Commission. Prisma Capital Management International LLP, its
London based affiliate, is authorized and regulated by the Financial
Services Authority in the United Kingdom.
Prisma's team offers expertise across multiple disciplines such as
portfolio management, risk, and operations and infrastructure. The
company has approximately 58 employees and offices in Manhattan, London
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with $62.3 billion in assets under
management as of March 31, 2012. With offices around the world, KKR
manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with investors through
its client relationships and capital markets platform. KKR is publicly
traded on the New York Stock Exchange (NYSE: KKR). For additional
information, please visit KKR's website at www.kkr.com.
Kristi Huller, 212-230-9722
Source: KKR & Co. L.P.
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