Astorg is preparing to kick off a sale of fund services group IQ-EQ, with lenders lining up around €2bn of buyout financing as private equity deal activity gathers pace in Europe, Bloomberg reports.

The private equity firm, which took control of Luxembourg-based IQ-EQ in 2016, is expected to launch the sale process shortly, according to people familiar with the matter. Bankers are already engaging with potential bidders in an effort to secure roles on the financing package, which is expected to take the form of euro-denominated leveraged loans.

Private credit firms are also showing interest in financing the transaction, setting up competition with traditional banks. Lenders have been keen to back M&A activity, which remains one of the most lucrative segments of investment banking.

IQ-EQ provides services including fund administration, compliance, and anti-money laundering consulting. The company administers more than $857bn of assets and employs over 6,500 people worldwide, according to its website.

A sale of IQ-EQ would add to a growing pipeline of transactions as improving market sentiment fuels expectations for a strong year in European M&A and leveraged finance. Astorg declined to comment, while IQ-EQ did not respond to a request for comment.

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