Qatar Investment Authority Backs SoFi
Posted on 05/29/2019
Online lending company SoFi, also known as Social Finance, raised US$ 500 million in equity in a funding round that was led by the Qatar Investment Authority (QIA). QIA invested alongside existing investors and SoFi CEO, Anthony Noto. San Francisco-based SoFi revealed it now has a US$ 2.3 billion balance sheet. QIA has a growing focus investing in companies in the TMT sector. The transaction is subject to customary closing conditions.
In the past, SoFi has attracted investors such as Peter Thiel, Singapore’s Temasek Holdings, and SoftBank Capital. SoFi was formed in 2011 with a strong focus on student-loan refinancing, but has pivoted toward other areas such as personal loans and mortgages.
“We strongly believe in SoFi’s approach, and their dedication to build a transformational financial platform that is rapidly disrupting consumer finance,” said Mr Mansoor Al-Mahmoud, CEO of QIA in a press release. “SoFi’s team have a clear long-term vision for their business, and we’re proud to be their partners and to support them on their journey as part of our broader strategic investments in technology.”
Wachtell, Lipton, Rosen & Katz is serving as SoFi’s legal advisor in connection with the transaction.
Morgan Stanley is serving as financial advisor and Shearman & Sterling is serving as legal advisor to QIA.