KKR Wins Approvals For Prisma Acqusition

Sep 13 2012 | 7:52am ET

Kohlberg Kravis Roberts said yesterday that it was on track to complete it acquisition of Prisma Capital Partners next month, even as two important clients of the fund of hedge funds expressed concerns about the deal.

KKR announced in June that it would buy Prisma for an undisclosed sum. Yesterday, it said that it had all necessary consents and regulatory approvals for the deal for the $8.1 billion fund of funds.

"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," KKR co-founders Henry Kravis and George Roberts said. "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."

Unfortunately for the happy couple, two of Prisma's public pension fund clients are not looking forward to the union. Both the Alaska Retirement Management Board and Kentucky Retirement Systems expressed concern about the deal, although neither is poised to pull its money.

"We're not happy that this has come up," T.J. Carlson, chief investment officer for the Kentucky system, told The Wall Street Journal. "We wish they would have stayed independent, the way they were."

KKR has sought to reassure such investors by noting that Prisma CEO Girish Reddy will lead its fund of funds effort, which its other two co-founders have agreed to remain with the combined company.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note