Exponent Private Equity has previously backed companies including Quorn, and Loch Lomond Distillery with any deal for the division, which employs around 450 people, is mooted to be in excess of £200m.
The reports come after KPMG began to consider the sale of the pensions arm in June this year after receiving a number of approaches.
KPMG’s pension division currently has around £50bn under advice advising corporate clients and companies’ pension trustees, with 20 partners at the business.
A spokesperson for KPMG UK said: “Following significant interest in our market-leading pensions practice, we can confirm we have entered into exclusive talks with Exponent with a view to progressing a sale. We will not comment further while negotiations remain ongoing.”