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

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...