A New York-based private equity firm has offered to acquire Australia's Perpetual Ltd. (ASX: PPT) for A$1.75 billion to take advantage of the higher yielding assets available.

Perpetual said in a statement to the Australian stock exchange, Kohlberg Kravis Roberts & Co. offered between A$38 and A$40 per share of Perpetual.

With this offer, shares jumped 22 percent in Sydney today to 6.830.

Exiting managing director Mr David Deverall has overseen a recovery in Perpetual's earnings amidst challenging times. The company's net income ending 2009 June 30 doubled to A$90.5 million, from A$37.7 million a year

Perpetual's net income in the year to June 30 more than doubled to earlier, helped by higher investment returns. Profit at the investment division jumped 22 percent in the last fiscal year, more than twice the 8.8 percent gain in Australia's benchmark stock index.

There was, however, a period of under-performance on the stock market for Perpetual, which to analysts was the downside of it.

The company said it has yet taken this offer into account: "The Perpetual board has not formed a view with respect to the indicative proposal and recommends that shareholders take no action at this time," the company said in the statement today.

Goldman Sachs Group Inc. will advise Perpetual in this underaking.

As of June 30, Perpetual managed more than A$27 billion in investment funds, administered A$210 billion, and advised on over A$8 billion of investments, according to its website.