DUBAI, Oct 25 (Reuters) - Bahrain-based private equity investor Investcorp has agreed to acquire the debt-management business of Britain's 3i for 222 million pounds ($271 million), it said on Tuesday.

The proposed transaction will add $12 billion to Investcorp's assets under management (AUM), bringing the Bahraini company's total AUM to $23 billion, and will be fully funded by the company's existing balance sheet.

Investcorp said it does not plan to seek debt capital or further equity investment for the transaction. ($1 = 0.8180 pounds)

(Reporting by Hadeel Al Sayegh; Editing by David Goodman) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))

Keywords: 3I GROUP M&A/INVESTCORP BANK