Credit Karma, a San Francisco, CA-based personal finance tech company, will receive a secondary investment from Silver Lake.
Silver Lake will acquire a significant minority stake in the company worth approximately $500 million from existing equity holders through an organized secondary process. In addition to the investment, Silver Lake Managing Partner Mike Bingle will join Credit Karma’s board of directors.
Following the deal, Founder and CEO Kenneth Lin will remain the largest shareholder, and together with co-founders Nichole Mustard and Ryan Graciano and the rest of the company’s existing management team will continue to drive its growth strategy and future expansion.
Credit Karma is a personal finance technology company offering a suite of products for members to monitor and improve credit health, prepare and file income taxes, monitor their identities, and track and manage vehicle information and financing solutions. In addition, Credit Karma leverages advanced data modeling to analyze and identify the best financial products available for its members and has originated more than $40 billion in credit products including credit cards, personal loans, mortgages, automotive financing, and student loan refinancing.
It has more than 80 million members in North America, including almost half of all millennials.