NEW YORK ( TheStreet) -- KKR, ( KKR - Get Report), Blackstone ( BX - Get Report) and Carlyle could soon be making acquisitions to diversify their businesses. Sandler O'Neill + Partner analyst Michael Kim wrote in a note that he believes that private equity firms are building up reserves to make some investments in capital markets, asset management and other businesses that would diversify their offerings. He noted that KKR sold $500 million of 10-year senior notes following a similar offering from Blackstone last week. Keybanc Capital Market ( KEY), executive vice president, Randy Paine told TheStreet that the PE industry has upwards of $600 billion in uninvested capital, and he is not surprised firms are looking at opportunities in financial services. "I think that given the financial regulatory environment that we are in, private equity firms are going to look at any opportunity where they see value and obviously with large financial institutions having to get out of the proprietary trading business, a lot of which is hedge fund related, it is not surprising," Paine said. Any moves by Blackstone and KKR would be similar to the rumors circulating that Carlyle would like to diversify its business by buying a hedge fund and is looking at raising two new debt pools. Christopher Ullman, a spokesperson for Carlyle declined to comment on any rumors. A source familiar with the firm confirmed that Carlyle is making opportunistic acquisitions in the financial space, and the private equity group is in various discussions with hedge funds. KKR was contacted, but would not discuss rumors about potential aquisitions in the financial space or that it was looking at either acquring or picking up staff from Goldman Sachs' ( GS)proprietary trading arm. --Written by Maria Woehr in New York.