KKR Prisma and PAAMCO to Form Liquid Alternatives Firm

February 13, 2017

On February 6, 2017, KKR announced a strategic partnership Pacific Alternative Asset Management Company, LLC to create a new liquid alternatives investment firm.

Under the terms of the agreement, the entire businesses of Pacific Alternative Asset Management Company, LLC (“PAAMCO”) and KKR Prisma will be contributed to PAAMCO Prisma Holdings, an independently operated entity, with 60.1% ownership by PAAMCO and KKR Prisma employees and a 39.9% stake held by KKR as a long-term strategic partner.  The transaction will result in a consolidation of over $30 billion in assets under management or advisement under the new brand, though both client and investment teams will remain unchanged.  The transaction is expected to close in the second quarter of 2017, subject to closing conditions and regulatory approvals.

KKR Prisma was acquired by KKR in 2012 and manages and constructs hedge fund portfolios across various liquid alternatives investments.  KKR Prisma has approximately $10 billion in assets under management.

PAAMCO, founded in 2000, is an institutional investment firm specializing in alternative investment solutions.  PAAMCO has approximately $10 billion in discretionary assets under management and $14 billion in assets under advisement.

To read the press release: please click here.


Categories

Hedge Fund M&A, Investment Manager M&A, Transactions