Published On: Tue, Feb 7th, 2017

PAAMCO and KKR Prisma Form Mega $30 Billion Investment Firm PAAMCO Prisma Holdings

The combined business PAAMCO Prisma Holdings will be majority employee-owned with employees of PAAMCO and KKR Prisma owning 60.1% of the combined business and KKR retaining a 39.9% ownership stake.

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  • The combined business will be jointly run by Jane Buchan, co-Founder and CEO of PAAMCO, and Girish Reddy, co-Founder of KKR Prisma and Head of KKR Hedge Funds

Hedge fund KKR and Pacific Alternative Asset Management Company, PAAMCO, has agreed to merge to create PAAMCO Prisma Holding, a new $30 billion firm one of the largest firms in the liquid alternatives industry.

Under the terms of the agreement, the entire businesses of both PAAMCO and KKR Prisma will be contributed to a newly formed company that will operate independently from KKR, and KKR will retain a 39.9% stake as a long-term strategic partner.

Under the terms of the agreement, the newly formed company named PAAMCO Prisma, will operate independently, although KKR will retain a nearly 40% stake, according to a joint statement. Employees will own the remaining 60%.

The two brands will continue to exist side-by-side, the statement said, with core investment and client teams remaining in place. PAAMCO founder Jane Buchan and KKR Prisma founder Girish Reddy will co-lead the new venture.

Founded in March 2000, PAAMCO is a leading private institutional investment firm with $24 billion of assets under management or advisement dedicated to offering alternative investment solutions.

KKR Prisma, with approximately $10 billion of assets under management, constructs and manages customized hedge fund portfolios and other products across the spectrum of liquid alternatives investments.

Jane Buchan, co-Founder and CEO of PAAMCO, said: “As the alternatives industry continues to evolve, expanding our reach will further enhance our ability to innovate and to provide leading solutions to our clients. This transformative step will enable us to provide added scale benefits, wider investment options and faster innovation to all of our investors. Organizationally, we are excited by how well Prisma’s investment franchise complements our own, and by the possibilities that KKR brings. I look forward to working with Girish to capitalize on the experience and expertise of our combined teams to continue to deliver compelling and value-added solutions to our clients.”

“This transformative step will enable us to provide added scale benefits, wider investment options and faster innovation to all of our investors,” said Buchan in the statement. “Organizationally, we are excited by how well Prisma’s investment franchise complements our own, and by the possibilities that KKR brings.”

“Joining forces with PAAMCO will enable us to better serve our clients’ evolving investment requirements,” added Reddy. “I believe greater scale, flexibility, and additional resources will enhance our ability to generate strong investment performance and to build and service bespoke solutions for our clients.

KKR acquired Prisma, which was founded in 2004 by Reddy and two of his former Goldman Sachs colleagues, Thomas Healey and Gavyn Davies, in 2012 as the company sought to expand beyond private equity and into hedge funds.

 

 

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