A number of private credit funds have been in discussions with KKR & Co. over a funding deal worth at least A$800m ($525m) to bolster their offer for Perpetual’s corporate trust and wealth management divisions.

According to Bloomberg, the conversations with Blackstone Inc. and other parties have centered around potential sources of funding, such as a loan on private credit. For each of the enterprises, the private equity firm intends to secure separate funding.

Perpetual, an Australian wealth manager, is in exclusive discussions with KKR to sell two units after a review to unlock shareholder value.

Moreover, EQT AB was among the bidders who had previously expressed interest in Perpetual.

In December, Australian investment group Washington H Soul Pattinson & Co. made a $3.5bn offer, which was turned down by Perpetual.

KKR’s conversations with institutional lenders are illustrative of the growing recognition of private lending, which is a $1.7trn worldwide industry, as a reliable substitute for bank funding.

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Furthermore, earlier last month Ruchir Swarup was recruited as KKR’s partner and chief information officer, effective immediately.

Swarup’s responsibilities will include guiding KKR’s technology strategy and vision. He will manage the firm’s efforts to embrace new technologies and grow existing ones in order to generate efficiency and minimise risk throughout the organisation.

Ryan Stork, chief operating officer of KKR stated: “Technology remains critical to protecting the firm and supporting us in efficiently scaling our businesses. As a technology veteran with nearly three decades of industry experience, Ruchir will build upon the foundation our team has created and help deepen connectivity across the firm. We are delighted to welcome Ruchir to KKR and look forward to leveraging his experience and exceptional management skills as we continue to advance our technology capabilities.”