On Wednesday, Credit Karma announced it secured a $500 million strategic secondary investment from technology investment firm Silver Lake. According to Credit Karma, Silver Lake will acquire a significant minority in the company. 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. Silver Lake Managing Partner Mike Bingle will also be joining Credit Karma’s Board of Directors. Lin stated:
“Over the past five years Credit Karma has seen explosive growth, and now helps more than 80 million members make progress with their finances, making us the leading personal finance technology company in North America. As we planned for the future and our continued growth, we sought a partner that could support our growth trajectory and provide existing investors an opportunity to lock in some of the rewards they’ve earned for their support and hard work. I’m delighted to welcome Silver Lake and look forward to their support on the next stage of the Credit Karma journey.”
Bingle also commented:
“Credit Karma is redefining personal financial management in dramatic ways. 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. We look forward to partnering with Ken and his world-class team to achieve Credit Karma’s long-term potential.”
For nearly 20 years, Silver Lake has reportedly invested in digital, fintech, and e-commerce platforms with innovative business models. Credit Karma joins current and prior Silver Lake fintech and digital leaders such as Alibaba Group, Ancestry, Ameritrade, Fanatics, Global Blue, GoDaddy, Interactive Data Corporation, Mercury Payment Systems, Nasdaq, Red Ventu, es, Skype and SoFi. Other terms of the transaction were not disclosed at this time.