KKR is acquiring Prisma Capital Partners, a customized hedge funds-of-funds manager with $7.8 billion in assets under management, confirmed Kristi Huller, KKR spokeswoman.
Terms of the transaction are not being disclosed. When the deal closes — expected in the fourth quarter — KKR will own 100% of the firm. Prisma will become part of KKR's public markets group.
As part of the deal, AEGON is selling its minority stake in Prisma to KKR, but AEGON will continue to be an investor in the funds. Some 90% of Prisma's assets under management come from institutional investors.
Prisma Co-founder and CEO Girish Reddy will run KKR's global hedge funds-of-funds group. Prisma Co-founders Thomas Healey and Gavyn Davies will become senior advisers to KKR. Prisma's 58 employees will join KKR. As part of the agreement, all cash proceeds received by management at closing will be reinvested in Prisma funds.
All three of Prisma's founders, who formed the firm in 2004, were Goldman Sachs partners.
Prisma investors include the $19.8 billion Alaska Retirement Management Board, the $14 billion Kentucky Retirement Systems, $9.3 billion Louisiana State Employees' Retirement System and $1.7 billion Denver Employees Retirement Plan.
