After the completion of the integreation, Prisma will continue to operate under its own brand while Prisma chief executive officer Girish Reddy will head KKR’s global hedge fund-of-funds business, KKR said in a statement.
KKR said that the acquisition of Prisma, which owns $7.8bn in assets under management, will see the private equity group’s assets under management increase by 10%.
KKR co-founder Henry Kravis said, "Many institutional investors are seeking more liquid alternative investment products, and we believe customized hedge-fund solutions play a key role in meeting that need."
The deal is expected to complete during the fourth quarter of the current fiscal, after getting the regulatory approval from concerned offices, said the firm.
Prisma will trade as part of KKR’s public markets segment that includes KKR Asset Management, which buys and sells securities including leveraged loans and high-yield bonds and houses.
Fund of funds appear to be losing sheen among some investors, which is apperant from the data released by Hedge Fund Research that assets in funds of funds declined to $643bn at the end of the first quarter from a top in 2007 of $798bn.
