KKR buys 25% stake in Nephila

KKR made a minority interest investment in Nephila Capital, a money manager that invests in reinsurance risk, including natural catastrophe and weather risk, confirmed Kristi Huller, KKR spokeswoman, in an e-mail.

KKR is acquiring its 24.9% stake from management and Man Group; Man will retain an 18.75% interest. Terms of the deal, which closed Wednesday, were not disclosed.

Nephila, which managed about $8 billion in assets as of Jan. 1, was formed in 1998 by Frank Majors and Greg Hagood as part of Willis Ltd., which at the time was a KKR portfolio company. KKR is buying the firm with balance sheet capital to broaden its liquid alternative investment and hedge fund strategies.