Private equity powerhouse Kohlberg Kravis Roberts announced that it has bought a 25% stake in Bermuda-based Nephila Capital in an effort to expand its hedge fund platform.
The two firms said in a joint statement Wednesday that KKR will acquire the shares “pro rata” from Nephila management and from Nephila’s minority stakeholder, London-based hedge fund giant Man Group. Man will retain an 18.75% interest in Nephila.
Nephila’s management team and investment strategies will not be affected by the acquisition. Financial terms of the transaction were not disclosed.
Specializing in natural disaster investments, Nephila manages about $8 billion in assets. It has additional offices in San Francisco and Nashville. KKR has approximately $66.3 billion in assets under management as of September 2012.