KKR & Co., the private-equity firm run by Henry Kravis and George Roberts, agreed to buy Avoca Capital to expand its European credit business. Terms of the acquisition weren’t disclosed.

Avoca Capital, based in London and Dublin, has $8 billion under management and invests in European loans, bonds and credits, the companies said today in a statement.

“We believe the European credit space offers significant opportunity,” Kravis and Roberts said in the statement. “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.”

KKR, based in New York, will have $28 billion in credit assets when the transaction closes, which is expected in the first quarter. The firm’s credit unit invested $2 billion in European companies in the past two years, according to the statement.

Pictured: Avoca co-chief executive James Hatchley

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