(Bloomberg) -- KKR & Co. is in the early stages of plans to finance its acquisition of public relations firm FGS Global with about $500 million of debt from private credit lenders, people with knowledge of the matter said.
The New York-based investment firm is buying an approximately 50% stake in FGS Global from British advertising agency WPP Plc for $775 million, in a deal announced earlier this month. This increases KKR’s stake in the business to about 80% from 30%.
The move to tap direct lenders is the latest sign of how the $1.7 trillion private credit industry is increasingly capable of beating out banks for buyout financing. KKR is also planning to opt for private credit for another recent purchase, Finland-based software company Accountor.
FGS Global was formed from the merger of Finsbury, The Glover Park Group, Hering Schuppener and Sard Verbinnen & Co.
Representatives for KKR and FGS declined to comment.
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