Exponent Private Equity LLP is in exclusive talks to buy KPMG's pensions advisory unit, Sky News reported, citing people close to the matter and confirmation from a company spokesperson.
The business, which advises clients on the management of pension assets worth over £50 billion, could sell for over £200 million, according to the report.
Talks about the sale have been happening since June and offers were submitted by other financial and trade bidders, the sources told Sky News.
A KPMG spokesperson confirmed to Sky News that the company has entered exclusive talks with Exponent after significant interest in the pensions business.
KPMG declined to comment on the price under discussion, and Exponent could not be reached for comment, according to the report.
The unit is one of the audit firm's largest and most profitable advisory operations, employing about 20 U.K.-based partners with around 450 employees in total.
Exponent specializes in mezzanine financing, management buyout, management buy-ins and upper midmarket investments.