(Bloomberg) -- Blackstone Inc. is leading a €950 million ($1 billion) loan package to back Permira’s buyout of Gossler, Gobert & Wolters, people with knowledge of the matter said. 

Permira agreed to buy the German insurance broker from Hg on Friday, the people said, asking not to be identified discussing confidential information. Other lenders supporting the transaction include Goldman Sachs Asset Management and Hayfin Capital Management.

Permira confirmed the agreement to acquire GGW in a statement.

“The Permira funds are excited to support GGW Group and the management team on their growth journey towards becoming the No. 1 insurance brokerage for small and medium-sized enterprises,” Philip Muelder, head of Permira’s services sector, said in the statement.

Representatives for Blackstone, Goldman and Hayfin declined to comment. 

The $1.6 trillion private credit market is increasingly winning out over bank syndicates that had traditionally financed large buyouts with leveraged loans. Private credit funds recently provided a record €4.5 billion ($4.9 billion) loan to back the buyout of Adevinta ASA.

The debt for GGW’s sale is split up into a €675 million unitranche loan — a blend of senior and junior debt — with a €275 million delayed drawn term loan on top of that for future acquisitions, the people said, who weren’t authorized to speak publicly. Pricing on the unitranche is 575 basis points over Euribor, with an original issue discount of 98. 

Private equity firms have converged on Europe’s fragmented insurance broker market to hunt for deals. Flagship transactions include KKR & Co.’s acquisition of French insurance broker April Group, valued at around €2.3 billion, a deal financed through a combination of bank and direct lending funding.

--With assistance from Kat Hidalgo.

(Updates with Permira statement in third paragraph)

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