Private equity giant KKR "is in advanced negotiations to buy listed non-bank lender Pepper Group" via KKR's credit team, the Financial Review reports.The AFR clarifies, though, that it is "unclear how progressed KKR's plans are or if overtures have been made to Pepper's board."The newspaper aired speculation on this theory in late May, though the lift in the share price and market capitalisation of Pepper was short lived.The AFR.com's report late yesterday lifted the share price by nine per cent over the prior close to A$3.75 and the market cap to $682 million.Pepper, best known locally for its foothold in non-conforming lending, is at its core a (mostly mortgage) loan servicer, the latter comprising A$45 billion out of $52 billion in assets under management.Patrick Tuttle, the co-chief executive of Pepper, left the company after 16 years at the end of March, leaving Mike Culhane as sole CEO at Pepper.