Klarna Offloads £30bn in Loans to Hedge Fund Elliott
Hey FinTech Fanatic!
Klarna is offloading a substantial part of its UK "buy now, pay later" portfolio to U.S. hedge fund Elliott. While the deal's terms remain undisclosed, this strategic shift could free up as much as £30 billion for new loans.
This comes at a crucial time for Klarna as it gears up for an anticipated U.S. IPO, with plans to fuel growth and capitalize on new opportunities.
In this transaction, Elliott—Paul Singer's $70 billion hedge fund—acquired a junior note in a vehicle holding the loans, giving Klarna more flexibility to meet its growth goals. Klarna will continue underwriting the loans and providing customer service, ensuring a seamless experience for borrowers.
Focusing on the U.S. market, Klarna has already signed partnerships with major players like Apple and Uber Eats. CFO Niclas Neglen highlights that the move will enhance global growth by optimizing asset management.
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FEATURED NEWS
🇺🇸 Klarna is offloading most of its UK “buy now, pay later” portfolio to US hedge fund Elliott for undisclosed terms, in a deal that will free up as much as £𝟑𝟎𝙗𝙣 for new loans, according to people familiar with the matter. Get the full story
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