Discover Financial Services in Riverwoods, Ill., has agreed to sell its private student loan portfolio to strategic partnerships that involve Carlyle and KKR.
Discover said in a press release that Firstmark Services, a division of Nelnet, would assume responsibility for servicing the $10.1 billion portfolio following the sale.
The purchase price will have a premium to the principal balance of the portfolio and, based on certain assumptions, is expected to be up to about $10.8 billion. The transaction is expected to be completed in multiple closings by the end of this year.
Wells Fargo and Skadden, Arps, Slate, Meagher & Flom advised Discover.