KKR is reported to be within the early phases of securing $500m (£389m) of debt from non-public credit score lenders to finance its acquisition of public relations agency FGS International.
In response to 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 predicted to shut by the top of the 12 months, topic to regulatory approvals and different customary closing situations.
Non-public credit score funds are more and more shifting 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 intervening time, non-public credit score can supply larger flexibility and velocity for sponsors, in response to business consultants.
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 underneath 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.
Learn extra: Carlyle and KKR purchase $10.1bn scholar mortgage portfolio
