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Credit Karma — a fintech platform that allows consumers access to check their credit scores and borrowing history and recommends financial products — has inked a deal with buyout shop Silver Lake Partners, The Wall Street Journal reported.
What Happened
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Silver Lake will buy an approximate $500-million minority stake in Credit Karma, making the company one of the most highly valued in fintech, as it puts the company's value at about $4 billion, according to WSJ.
Instead of Credit Karma receiving proceeds or issuing new shares, Silver Lake will collect common shares from early investors and employees, the report said. Credit Karma CEO Kenneth Lin told WSJ it's important for early investors to give its early backers an opportunity to take some money out of the company.
Why It's Important
Credit Karma's latest transaction implies an initial public offering is unlikely to happen until late 2019, WSJ said, citing a source who is familiar with the matter. The company's CEO did confirm it periodicially evaluates an IPO, but there is no existng timetable.
What's Next
As part of the deal, Silver Lake managing partner Mike Bingle will be given a seat at Credit Karma's board. He also holds a seat on Social Finance's board, another fintech firm in which Silver Lake is a partner.
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Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.