UK private equity firm 3i is in discussions with US investment manager Invesco to acquire its European collateralised loan obligation portfolio, a sign that the UK private equity firm is looking to further expand its debt management arm.

3i has been in talks with Invesco for a some time to acquire the European CLO portfolio, according to people familiar with the matter, though the timing of a possible agreement remains unclear. The portfolio includes Invesco Senior Secured Management, which manages $18bn of bank loans.