Reported about 1 year ago
Carlyle and KKR won an auction for a $10 billion student loan book from Discover Financial, as reported by the Financial Times. The joint bid outbid competitors like Sixth Street, BlackRock, and Canada Pension Plan Investment Board, with the loan book selling above par. Discover Financial, KKR, and Carlyle have not yet responded to requests for comment. The auction attracted major players in private credit like Ares, Blackstone, and Oaktree. Last November, Discover Financial announced the exploration of selling its student loan portfolio, transferring loan servicing to a third party. Earlier this year, Capital One, backed by Warren Buffett, announced the acquisition of Discover Financial for $35.3 billion in an all-stock deal amidst increasing scrutiny of bank mergers by U.S. regulators under President Biden's administration.
Source: YAHOO