A strategic partnership of funds and accounts managed by the credit businesses of global investment firms Carlyle and KKR is to purchase an approximately $10.1bn portfolio of prime student loans from Discover Financial Services.
Carlyle’s investment in the portfolio was led by its credit strategic solutions team, a group within its global credit business focused on asset-backed investments, while KKR’s investment in the portfolio comes primarily from its asset-based finance strategy and other credit vehicles and accounts.
KKR has made more than 80 ABF investments globally since 2016 through a combination of portfolio acquisitions, platform investments and structured investments. The firm has approximately $54bn in ABF AUM and a team of more than 50 professionals directly involved in ABF globally.
The transaction is expected to close by the end of 2024 subject to customary closing conditions.
Paul Hastings advised Carlyle and Clifford Chance advised KKR, while Sidley Austin advised both firms. Wells Fargo and Skadden, Arps, Slate, Meagher & Flom advised Discover Financial Services.
