Silver Lake makes $500m secondaries investment in personal finance platform Credit Karma

Personal finance platform Credit Karma has received a $500m strategic secondaries investment from Silver Lake.

The deal will see Silver Lake pick up a minority stake in the company from existing equity holders through a secondary process. Credit Karma founder and CEO Kenneth Lin will still hold the largest share in the company.

As part of the transaction, Silver Lake managing partner Mike Bingle will join the company’s board of directors.

US-based Credit Karma is a personal finance platform that offers consumers a suite of tools to monitor and improve credit health, prepare and file income taxes, monitor their identities and manage vehicle information and financing options. Through data modelling the platform can analyse and identify the best financial products for users.

Currently it serves over 80 million members in North America and has originated over $40bn in credit products including credit cards, personal loans, mortgages, automotive financing, and student loan refinancing, according to the company.

Credit Karma hopes to use the capital to drive its growth strategy and support its future expansion plans.

Silver Lake’s Bingle said, “The company’s cutting-edge technology platform and unwavering focus on long-term partnerships — both with its members and financial institutions — are creating explosive growth opportunities for Credit Karma, increasing member engagement and expanding its membership base.”

This deal marks Silver Lakes third in the FinTech space this year. Earlier in the month, the firm, alongside Battery Ventures, acquired real estate data platform EDR in $205m deal.

Copyright © 2018 FinTech Global

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