Carey Olsen advises on PE firm's investment into leading fintech bank

22 August 2017

Carey Olsen’s Guernsey funds team has advised global investment firm Permira on the acquisition of a strategic equity stake in Klarna Bank AB - one of Europe’s largest and fastest growing fintech banks, by an investment partnership advised by Permira.   

Klarna is serves 60 million consumers and 70,000 merchants providing easy-to-use payment solutions aimed at making online payments safe, simple and smooth. The company is active in 18 markets and recently became the largest European fintech company to receive a banking license.

It is Permira’s first foray into the fintech sector. The deal value and stake in Klarna is undisclosed.

Permira, which advises funds and accounts with a total committed capital of circa €32 billion, focuses on identifying companies for long-term investment, combining local knowledge and global expertise to help them grow sustainably and realise their full potential.

The Carey Olsen team included partner Tom Carey, Senior Associate Matt Brehaut and Associate Vaishali Gupta, who were responsible for the establishment of the investment vehicle, incorporating a new general partner vehicle and seeking appropriate regulatory exemptions.

Mr Carey said: “This complex transaction needed to be completed within a week and we met that tight schedule delivering a high level of expertise. There is no question that fintech is a burgeoning area of interest for investment and Carey Olsen is taking the lead in offering clear and knowledgeable advice in this sector."

Fried, Frank, Harris, Shriver & Jacobson LLP and Nordic law firm Roschier provided onshore counsel for the acquisition.

Klarna Co-Founder and Chief Executive Sebastian Siemiatkowski said: "As Klarna continues its journey towards a smoother shopping experience and now as a consumer-oriented and technology intensive bank, this is another exciting step for the company. I am delighted to have a partner like Permira on board with their global footprint and strong expertise in ecommerce and fintech. I look forward to them strategically supporting the future development of Klarna."

Permira Principal and Head of Fintech Andrew Young said: "In Klarna we see a unique scale fintech innovator that has successfully improved shopping experiences for both merchants and consumers. We see many vectors that will drive future success and we look forward to supporting the company’s future organic, geographic, and acquisition growth strategies."