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Carlyle and KKR, two private equity powerhouses, emerged victorious in a heated auction to claim Discover Financial’s substantial $10 billion student loan portfolio.
The joint bid from these financial behemoths surpassed a rival offer from Sixth Street, BlackRock, and the Canada Pension Plan Investment Board, with the loan portfolio fetching a price above its face value, as reported by the Financial Times.
The auction also witnessed notable interest from other big players in the financial arena, including Ares, Blackstone, and Oaktree, as highlighted by the FT.
Back in late November, Discover had signaled its intent to explore the potential sale of its student loans portfolio, a move that aligns with its previous decision to be acquired by Capital One for a staggering sum exceeding $35 billion in February.
Further Insights on Discover Financial Services
