NEW YORK (Bloomberg) — Kohlberg Kravis Roberts & Co. Has indicated a "high level of interest" in buying Lehman Brothers Holdings Inc.'s investment management division, CNBC reported, citing unidentified people close to the negotiations.

KKR, the buyout firm run by Henry Kravis, is now the leading candidate to buy the business, which includes fund manager Neuberger Berman, CNBC said, citing people close to the talks. Blackstone Group LP, led by Steve Schwarzman, has told people working for Lehman that it has almost no interest in the unit, CNBC said, without citing a source for the information.