KKR may acquire Axa's PE division

KKR & Co, the US buyout firm co- founded by Henry Kravis, is among firms weighing a bid for Axa SA’s private equity fund unit, three people with knowledge of the talks said.

First-round bids are due next month, said the people, who declined to be identified because the plans are private. Axa, France’s biggest insurer, said in a statement today it is reviewing its stake in the unit.

Private equity firms such as New York-based KKR and Washington-based Carlyle Group are seeking to diversify beyond leveraged buyouts and increase their assets under management to ensure steadier fee income. Carlyle purchased a stake in AlpInvest Partners NV in July, boosting assets to $153 billion and added a range of private-equity funds of funds, which invest money for clients in third-party managers.

Axa is selling the unit, which manages about $28 billion, to focus on insurance, people with knowledge of the discussions said on September 23. The operation may be valued at about ¤500 million ($680 million), they said. Officials at KKR and Axa Private Equity declined to comment.

The division, based in Paris, manages assets for Axa as well as investors including pension funds and sovereign wealth funds. It holds stakes in U.S. and European buyout funds run by firms including KKR, Blackstone Group LP (BX) and BC Partners Ltd. It also invests directly in mid-sized companies and infrastructure projects in Europe.