KKR to Combine Prisma With Paamco to Create $34 Billion Firm

  • Employees to own 60% of Paamco Prisma while KKR holds 40%
  • Firm will seek to combine products, lower fees: co-CEO Reddy
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KKR & Co. agreed to combine its Prisma hedge-fund unit with Pacific Alternative Asset Management Co. to create one of the world’s largest investors in hedge funds.

KKR will have a 40 percent stake in Paamco Prisma Holdings, which will manage about $34 billion, according to a statementBloomberg Terminal Monday from the companies. KKR Prisma manages about $10 billion and Irvine, California-based Paamco oversees $24 billion.