(Reuters) -Personal fairness companies Carlyle Group (NASDAQ:) Inc and KKR are the highest bidders for U.S. bank card issuer Uncover Monetary’s $10 billion U.S. pupil mortgage portfolio, the Monetary Instances reported on Thursday.
The 2 are “working together” for the bid as non-public funding companies search to increase their urge for food for credit score, the newspaper reported.
The report didn’t specify in what capability the 2 companies had been working collectively.
Different PE companies comparable to Ares, Blackstone (NYSE:), Brookfield, Fortress and Oaktree had additionally studied bids for the mortgage portfolio, FT mentioned.
Uncover Monetary, Carlyle, KKR, Ares, Blackstone, Brookfield, Fortress and Oaktree didn’t instantly reply to Reuters requests for remark.
FT added that the deal is prone to conclude later this month or in early July.
Final November, Uncover Monetary mentioned it was exploring the sale of its pupil mortgage portfolio, stating {that a} potential sale would see the servicing of those loans transferred to a 3rd celebration.
Earlier this 12 months, Warren Buffett-backed U.S. client financial institution Capital One mentioned it will purchase Uncover Monetary for $35.3 billion in an all-stock deal.
The deal comes as regulators ramp up scrutiny of financial institution mergers below U.S. President Biden’s administration, and as debate over the dangers and advantages of financial institution mergers intensify after JPMorgan and New York Group Financial institution NYCB.N had been allowed to snap up failed financial institution property final 12 months.
