The firm held preliminary talks with HIG owners Sami Mnaymneh and Tony Tamer in the second quarter about a potential deal according to Bloomberg, which cited people familiar with the matter.
HIG cancelled the talks, which didn’t result in an offer, and instead chose to sell a minority stake to Dyal, the people added.
Back in August, HIG Capital sold a minority stake of its business to Dyal Capital Partners III, a permanent capital vehicle managed by Neuberger Berman.
Spokespeople for KKR and HIG Capital were not immediately to respond to a request for comment.
Founded in 1993, HIG has offices in the US, Europe and South America.
The mid-market focused firm, which has more than $20bn of equity under management, operates a range of funds across equity, debt and real estate strategies, according to its website.
Its private equity business has invested in and managed more than 200 companies worldwide since its founding, with combined sales in excess of $30bn.
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