It’s a cozy arrangement for all involved, and marks another step in private lenders’ encroachment into traditional financiers’ turf.
KKR will now purchase and hold up to 3 billion euros of PayPal’s BNPL loans, originated in five European countries and typically a few months in duration.
KKR can pump up its returns using leverage – the deal is funded partly from loans made by its own credit funds.
Follow @JMAGuilford on TwitterCONTEXT NEWSFinancial technology firm PayPal announced on June 20 that it had signed a multi-year 3 billion euro replenishing loan agreement with asset manager KKR.
The deal will see KKR purchase up to 40 billion euros of PayPal’s short-term buy-now-pay-later loans now and in the future.
Persons:
Joe, Banks, John Foley, Katrina Hamlin
Organizations:
YORK, Reuters, Joe Public, KKR, PayPal, Citi, Thomson