Värde has agreed to acquire CreditShop, an Austin-based consumer finance company, for an undisclosed sum.
CreditShop is the 25th largest MasterCard and Visa credit card issuer in the US.
CreditShop acquired a $1.6bn MasterCard credit card portfolio from Barclaycard in March this year. The company is gearing up to introduce its own credit card products in 2018.
Commensurate with closing of transaction, CreditShop also issued a new $1.2bn credit card receivables securitisation.
Värde Partners North America head of specialty finance Aneek Mamik said: “Värde’s acquisition of CreditShop provides an attractive entry point into the $500 billion consumer credit card industry and is an extension of our strategy of growing specialty finance platforms globally.
“We believe the experienced leadership team and scale of the platform will allow CreditShop to gain significant market share in a segment largely underserved by the traditional banking system following the financial crisis.”
CreditShop CEO Daniel Duncan said: “We are excited to have Värde as our new owner and strategic partner, bringing unique resources, capabilities and experience within consumer finance.”