(Reuters) -Non-public 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. scholar mortgage portfolio, the Monetary Occasions reported on Thursday.
The 2 are “working collectively” for the bid as non-public funding companies search to develop 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 equivalent to Ares, Blackstone (NYSE:), Brookfield, Fortress and Oaktree had additionally studied bids for the mortgage portfolio, FT stated.
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 more likely to conclude later this month or in early July.
Final November, Uncover Monetary stated it was exploring the sale of its scholar mortgage portfolio, stating {that a} potential sale would see the servicing of those loans transferred to a 3rd get together.
Earlier this yr, Warren Buffett-backed U.S. shopper financial institution Capital One stated 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 Neighborhood Financial institution NYCB.N had been allowed to snap up failed financial institution property final yr.