SoFi Announces Over $500 Million Strategic Growth Investment Led by Qatar Investment Authority
Supports SoFi's Continued Investment in Innovation and Rapid Rate of Growth
SAN FRANCISCO, May 29, 2019-- SoFi, a mobile-first personal finance company, announced today it has closed over $500 million in equity financing led by Qatar Investment Authority (QIA), which values the company at $4.3 billion on a pre-money basis. SoFi plans to use the funds to continue to invest in its rapid rate of innovation and growth, fulfilling its mission to help SoFi members achieve financial independence to realize their ambitions. The investment round further strengthens SoFi's balance sheet to total capital of $2.3 billion. The other investors in the company's fundraise include existing investors as well as CEO Anthony Noto.
"Over the last year, we've worked aggressively to grow SoFi from a desktop lending business to a broad-based, mobile-first financial platform enabling members to borrow, save, spend, invest and protect their money," said Anthony Noto, CEO of SoFi. "We're thrilled to have QIA as a new investor and partner in our journey to help our members Get Their Money Right."
"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. "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."
This announcement follows several key product releases from SoFi since the start of 2019, including SoFi Invest, an investment platform inclusive of active investing in stocks and ETFs (brokerage), SoFi-branded ETFs, and automated investing, as well as SoFi Money, the features of a checking and savings account in one new account with 2.25% APY, no fees, and the ability to spend, save, and pay all from the SoFi mobile app. SoFi also entered the undergraduate loan business with their Private Student Loans and relaunched its home loans experience earlier this year. The company recently announced that they have over 700,000 members and 7.5 million registered users.
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.
SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than 700,000 members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded ambitious people. For more information, visit SoFi.com or download our iOS and Android apps.
About Qatar Investment Authority (QIA)
Headquartered in Doha, the QIA is structured to operate at the very highest levels of global investing. As a world class investor, the QIA adheres to the strictest financial and commercial disciplines. It has a strong track record of investing in different asset classes, including listed securities, property, alternative assets and private equity in all the major capital markets as well as the newer emerging markets.
SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org). Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612.
"SoFi Invest" is the brand name for brokerage products and services offered through SoFi Securities LLC (SFS), Member FINRA/SIPC. SoFi Money« is a product of SFS. Advisory services offered through SoFi Wealth LLC (SFW), an SEC Registered Investment Adviser. SFS and SFW are affiliated companies under the common control of Social Finance, Inc. (SoFi). Neither SoFi nor its subsidiaries are a bank.
Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Clearing and custody of all securities are provided by APEX Clearing Corporation. Information on SoFi Wealth available in the firm's Form ADV Part 2 Brochure on the SEC's website.
SoFi ETFs are distributed by Foreside Fund Services, LLC. Social Finance, Inc. ("SoFi") is not an affiliated person of the Funds, the Adviser, the Sub-Adviser, the distributor, or any of their affiliates. SoFi and/or its affiliates, including SoFi Securities, LLC, do not make investment decisions, provide investment advice, or otherwise act in the capacity of an investment adviser to the SoFi Funds. SoFi has provided support in developing the methodology used by each Index ETF's underlying index to determine the securities included in such Index. However, SoFi is not involved in the maintenance of each such Index and does not act in the capacity of an index provider.
Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. QIA and SoFi do not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will QIA or SoFi or their respective affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages.
Qatar Investment Authority
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