KKR is reported to be within the early levels of securing $500m (£389m) of debt from non-public credit score lenders to finance its acquisition of public relations agency FGS World.
Based on Bloomberg, the New York-based funding large plans to extend its stake within the enterprise to about 80 per cent from 30 per cent.
The deal, introduced final month, noticed KKR worth FGS at $1.7bn and agree to purchase the additional 50 per cent stake from British promoting company WPP for $775m.
Learn extra: KKR eyes Japanese non-public credit score
The transaction is anticipated to shut by the tip of the 12 months, topic to regulatory approvals and different customary closing circumstances.
Non-public credit score funds are more and more transferring in on the higher finish of the center market, clawing market share away from banks regardless of the restoration of the broadly syndicated mortgage market and high-yield bonds. Whereas public credit score is competing on pricing in the meanwhile, non-public credit score can provide higher flexibility and pace for sponsors, in line with business specialists.
The acquisition follows information that KKR plans to make use of non-public credit score for the acquisition of Finnish software program firm Accountor.
Final month, KKR introduced that it had raised $32bn (£24.9bn) within the second quarter of this 12 months, the second highest quarter within the agency’s historical past, bringing property below administration (AUM) to over $600bn.
Adjusted web revenue rose 49 per cent year-on-year to $972m, whereas fee-related earnings rose by 25 per cent year-on-year to a document $755m.
The group’s whole AUM amounted to $601bn, up 16 per cent year-on-year.
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