American private equity firm KKR is negotiating with advisers to sell its stake in Indian financial services provider Avendus Capital, reported Bloomberg.

The private equity firm is looking to divest stake in Avendus at a valuation of over $500m, people privy to the development told the publication.

KKR is nearing an agreement to hire two banks to carry out formalities of the sale, informed the sources.

According to the sources, other investors in Avendus could join KKR in the transaction. This will lead to the sale of approximately 80% stake of the firm.

The discussions, which are currently at nascent stages, might not result in a deal.

Spokespersons from both KKR and Avendus did not make any comment on the development.

In 2015, KKR announced its agreement to buy a majority stake in Avendus Capital. The deal allowed Avendus to enter the credit solutions business as well as strengthen its wealth and alternative asset management offerings.

Two years later, KKR revealed its intention to make additional investment in the Mumbai-based company.

Avendus offers a range of solutions such as investment banking, wealth management, alternative assets management, among others.

In January this year, Avendus stated that it would buy Spark Capital’s institutional equities business to deliver equity capital market services.

Operating for 23 years, the firm began its journey as a boutique investment bank that advises technology companies in receiving capital and conducting acquisitions.