Hillhouse Investment is nearing a deal to purchase a significant minority stake in LRQA, the UK-based certifications and inspections company currently owned by Goldman Sachs Group Inc.'s asset management division, according to people familiar with the matter.

The transaction would see Hillhouse take partial ownership of a business that provides testing, inspection, and certification services across multiple industries. Goldman Sachs' decision to sell part of its holding suggests the bank may be rebalancing its alternative investments portfolio, potentially returning capital to investors or redirecting funds toward other opportunities.

For Hillhouse, the acquisition represents expansion into the industrial services sector, adding a steady-revenue business to its portfolio. LRQA operates in a niche market where regulatory compliance drives demand, making it relatively insulated from economic cycles. Such assets have become attractive to private equity firms seeking predictable returns.

The deal underscores continued private equity interest in UK industrial and professional services companies, particularly those with international reach and recurring revenue models. It also signals how major banks are actively managing their private market exposures through selective exits and partnerships.