Private equity firm KKR & Co has approved the deal to purchase Avoca Capital. The deal would enable the US investment firm managed by Henry Kravis and George Roberts to expand its footprint in the credit business in Europe. The companies did not provide financial details of the transaction.

With offices in London and Dublin, Avoca Capital looks for opportunities to invest in European bonds, loans and credits. It currently has USD 8 billion of assets under management.

In a statement, KKR said it saw significant opportunity in the European credit market. Kravis and Roberts added, "Avoca has a very strong track record, an entrepreneurial management team and excellent capabilities that are complementary to ours in European senior and liquid credit."

The transaction is expected to be completed in the first quarter of next year. After the deal would be completed, the New York-based private equity firm would have USD 28 billion in credit assets.