KKR (KKR) has been rounding up private lenders offering a combination of senior and subordinated debt to help fund its proposed purchase of Karo Healthcare, bypassing traditional banks, Bloomberg reported on Wednesday, citing people with knowledge of the matter.

Apollo Global Management (APO) is leading the group of private lenders that also includes Goldman Sachs (GS), JPMorgan Chase (JPM) and Jefferies (JEF) along with privately held CVC and KKR's private credit unit, the sources said.

KKR announced plans to acquire Stockholm-based Karo on April 9, buying the specialty pharmaceuticals company from EQT as Karo continues to expand beyond its Scandinavian roots and shift its strategic focus to consumer health care. The companies did not disclose financial details of the transaction but the Bloomberg report said KKR has arranged about 1.1 billion euros ($1.25 billion) in funding for the deal.

KKR and all of the lenders did not immediately respond to requests from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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