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BEVERLY HILLS, CA-Kennedy Wilson Inc. has raised $110 million in new equity with the completion of the company’s previously reported reverse merger with Naples, FL-based Prospect Acquisition Corp. raises $110 million in equity. The combined company, called Kennedy Wilson Holdings Inc., will have “significant capital to take advantage of distressed opportunities in the real estate market and grow its auction services and property management businesses,” according to a statement by the Beverly Hills-based firm.

As GlobeSt.com reported in September when the two companies disclosed the merger agreement, Prospect is a special purpose acquisition company with approximately $248 million of cash that it raised in an IPO in November 2007. The merger agreement called for Prospect to change its name to Kennedy Wilson Holdings Inc. and for Kennedy Wilson to become the surviving entity as a wholly owned subsidary of Prospect. The newly merged public company has approximately 41 million shares outstanding of which Kennedy Wilson Inc.’s former shareholders and management own approximately 70%.

William McMorrow, chairman and CEO of Kennedy Wilson, calls the transaction “a pivotal moment in the history of our company.” In a September conference call in which Kennedy Wilson discussed the then-pending merger, McMorrow noted that, following the merger with Prospect, the company would have significant liquidity and virtually no debt. Kennedy Wilson plans to co-invest with institutional investors, with the cash to serve as its 5% to 7% co-investment pieces in its fund and separate account management platforms.

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