KKR (KKR) to Invite #Saudi Wealth Fund (PIF) to Back Telecom Italia Bid - Bloomberg

KKR (KKR) to Invite Saudi Wealth Fund (PIF) to Back Telecom Italia Bid - Bloomberg

KKR & Co. has reached out to Saudi Arabia’s sovereign wealth fund as it seeks co-investors to join its proposed acquisition of Telecom Italia SpA, people with knowledge of the matter said.

KKR approached the Public Investment Fund, which is chaired by Saudi Crown Prince Mohammed bin Salman, to gauge its interest in providing capital for the bid, according to the people. It has also held talks with other sovereign wealth funds and infrastructure investors about teaming up, the people said, asking not to be identified because the information is private.

The PIF would take a passive role in any deal, the people said. Discussions are ongoing, and the Saudi fund hasn’t decided yet whether to join the KKR consortium, the people said.

Sovereign wealth funds are increasingly playing an important role supporting private equity firms on large takeover bids. The Abu Dhabi Investment Authority and Singapore’s GIC Pte backed the more than $30 billion acquisition of Medline Industries Inc. last year by a group of buyout firms.