By Chibuike Oguh

(Reuters] – Petershill Partners Plc – The London-listed subsidiary Goldman Sachs Group People familiar with the situation said that Inc (NYSE:),’s asset management unit, is close to an agreement to purchase a stake at private equity firm Arsenal Capital Partners.

Sources said that Petershill has won an auction to purchase minority stakes of alternative asset managers and invest in Arsenal Capital.

Unconfirmed details regarding the value of the stake or the amount discussed were not available. Arsenal Capital is unsure what it will do with the funds and if the founders will take advantage of the chance to lower their stakes.

Arsenal Capital spokespeople declined to comment.

Sources said that negotiations may still be concluded without reaching a deal, but they asked to remain anonymous because it is confidential.

Private equity firms usually sell stakes to raise capital in order to finance growth initiatives such as seeding funds.

Arsenal Capital, a New York-based firm that makes growth equity and buyout investments in companies primarily in healthcare and industrial sectors. It was established in 2000, and currently manages approximately $5.8 trillion in assets.

Petershill was founded by Goldman Sachs, in 2007. It is competing with a small number of large firms such as Dyal and Blackstone (NYSE.) Inc.

Petershill was listed in London as an initial public offer in September. Since then, its shares have seen a loss of close to one-third of their value.

Petershill announced earlier this week that it has successfully raised $5 billion to fund its fourth flagship fund. The company’s past investments in private equity fund management include Accel-KKR and Francisco Partners.