KKR Announces Prisma Capital Partners Acquisition on Track to Close in October
NEW YORK--(BUSINESS WIRE)-- KKR & Co. L.P. (KKR), a leading global investment firm, today confirmed that all necessary consents and regulatory approvals to acquire Prisma Capital Partners LP ("Prisma") have been obtained and that the closing is anticipated to occur in October 2012. KKR announced its agreement to acquire Prisma, a leading provider of customized hedge fund solutions, on June 18, 2012.
We are pleased with Prismas performance and business momentum since announcing the transaction in June and we appreciate the support from Prismas clients. We believe that the combination of Prismas deep investment capabilities and KKRs global footprint will create a unique offering in the market, and we look forward to Prisma becoming part of KKR, said Co-Founders and Co-CEOs, Henry Kravis and George Roberts.
As of September 1, 2012, Prisma had $8.1 billion in assets under management (AUM), which is Prismas highest level of AUM in its history and represents an increase from its $7.8 billion of AUM as of April 1, 2012. Since the announcement in June, investors have funded or awarded new mandates in excess of $650 million, including several additional allocations from existing investors. In addition, virtually 100% of Prismas clients have opted to continue to entrust management of their assets to Prisma following the transaction and the firm has seen redemption requests of less than 1% of AUM since the announcement, lower than the last four quarters.
We recognize that our investors expect us to continue to deliver the same or better levels of investment performance and investor servicing as we always have, and I am confident that we can deliver on those expectations, said Girish Reddy, Co-Founder and CEO of Prisma.
Upon the closing of the transaction, Prismas investment operations and processes will remain the same. Cofounder and CEO Girish Reddy will assume leadership for KKRs global hedge fund of funds effort. Prisma Cofounders Thomas Healey and Gavyn Davies will become Senior Advisors to KKR. As part of the transaction, all employees have agreed to stay with Prisma after the acquisition and Prisma will continue to operate under the Prisma brand.
The Prisma platform remains one of the strongest in the industry and we look forward to having everyone join our team. They have a stellar track record of investing, consistently performing in the top quartile and are well known for providing customized solutions to clients, said Scott Nuttall, Head of Global Capital and Asset Management at KKR.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $61.5 billion in assets under management as of June 30, 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.
This release contains certain forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Without limiting the foregoing, statements regarding KKRs acquisition of Prisma and the resulting combined business may constitute forward-looking statements. Such statements are subject to the risk that the terms of such transaction may be modified, the transaction may not be completed at all or the benefits and synergies from such transactions are not realized. The forward-looking statements are based on KKR's beliefs, assumptions and expectations, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to KKR or are within its control. KKR does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law. Additional information about factors affecting KKR is available in KKR & Co. L.P.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, filed with the SEC on February 27, 2012, and other filings with the SEC, which are available at www.sec.gov.
Source: KKRCopyright Business Wire 2012