Kohlberg Kravis Roberts is reportedly preparing a move to grab a 20 per cent stake in retailer The Hut.
The Financial Times reports that the 100m deal would value the company at 500m.
Earlier this year The Hut said it was not considering an IPO following the perceived poor performance of other retailers who had opted to go public, with chief executive Matthew Moulding – who currently owns 17 per cent of the business – saying The Hut didn't want to get caught in that crossfire”.
Last year The Hut posted annual sales of 176m, up 34 per cent year-on-year, while earnings climbed 48 per cent to 15m. Sales for the current year are forecast to hit 250m with expected earnings of 25m.