Prisma Capital Partners, the hedge fund arm of investment firm KKR, and Pacific Alternative Asset Management Company (PAAMCO) have completed their proposed merger to create a new liquid alternatives investment firm with over $30bn in assets.

The combined group will operate under the name PAAMCO Prisma Holdings, with employees of Prisma and PAAMCO owning 60.1% of the firm. KKR will hold a 39.9% stake in the combined business as a strategic partner.

The merged entity will be jointly headed by PAAMCO co-founder and CEO Jane Buchan and KKR Prisma co-founder Girish Reddy.

PAAMCO and Prisma’s core investment and client teams will be retained as part of the deal, whereas the two brands will continue to operate side-by-side.

At the time of the deal’s announcement in February 2017, KKR co-founders and co-chairmen Henry Kravis and George Roberts said: “The decision to combine Prisma with PAAMCO is based on our shared view that a larger enterprise with exceptional resources, technology and investment acumen will be even better positioned to support clients in today’s marketplace.”