Marshall Wace LLP and its associates, a leading international liquid alternative manager, and KKR Co. L.P., a leading international investment company, announced a strategic long-term partnership today. Under the agreement deals, KKR will be acquiring a 24.9% interest in latter’s company through an alliance of common units and cash. In addition to it, both the leading firms have the options to enhance the KKR’s interest for ownership at a 39.9% over the time.
Founded by Ian Wace and Paul Marshall in 1997, the firm is ruling the assets of value over $22 billion under its management, predominating in equity short and long strategies. It has an excellent track record of 17 years in investment and innovation success, simultaneously delivering marvelous returns and has the lower correlation in the overall market system. In addition to this, the firm has been growing business lending marketplace known as MW Eaglewood, which specializes in peer-to-peer investment strategies and direct fund lending.
This strategic partnership signifies the firms' strong practices of innovation, entrepreneurship, cultural alignment, and investing expertise. The alliance will further enhance existing product suites from the firm and it will help in the innovation of newer products for better service to clients.
Chief Executive of Marshall Wace, Ian Wace said over the strategic partnership, "Over the last few years, we have been approached by several firms looking to invest in our business, but KKR offered something different: a true, long-term partnership. While our core operations and investment process will not change, we believe we will be able to build on the complementary relationships and skills of both firms to meet our clients' evolving investment requirements."
The largest substitute asset management, Hedge Fund Assets, is now holding a global fortune of $3 trillion. The liquid substitutes for this firms’ fund market, is now at a $1.4 trillion stake record and it has boosted at an annualized rate of 17% since 1990, according to the reports obtained through Hedge Fund Research, and this growth value is expected to boost forward continuing its legacy.
Head of Global Capital and Asset Management and Member of KKR, Scott Nuttall, commenting on the partnership said, "We believe Marshall Wace has built a premier franchise within the liquid alternatives space, and the firm has an entrepreneurial DNA and a culture that is similar to KKR's. This is an important step for both of our firms and the beginning of a long-term partnership."
Merging Marshall Wace and KKR’s investment acuity, geographic footprints, and distribution network will permit the free flow for innovative development of product, hence, enabling both companies to meet the further clients’ demands within this area of highest growth.
The current Marshall Wace’s management team will continue to handle it's business separately, the same way it has been doing ever since it was established. Long-term agreements have been signed by all capital partners and investors, and investment strategies for the companies will remain unaltered.