KKR Agrees to Buy Nephila Capital Stake in Hedge-Fund Expansion

KKR & Co. agreed to buy a 24.9 percent stake in hedge fund Nephila Capital Ltd. as it expands beyond its main private-equity business. Financial terms weren’t disclosed.

Nephila, a Bermuda-based firm with $8 billion in assets that makes reinsurance-related investments, will continue to operate under its own name, New York-based KKR said yesterday in a statement. KKR will acquire its shares from Nephila’s management as well as a portion of the stake owned by Man Group Plc, the biggest publicly traded hedge-fund manager, according to the statement.