TPG, the American private equity giant, is in advanced talks to take a stake in Tide, the British-based digital banking services platform.
Sky News has learnt that TPG, which manages more than $250bn in assets, is discussing acquiring a significant shareholding in the company.
Sources said that Tide’s existing investors were expected to sell shares to TPG, while a separate deal would involve another existing shareholder in the company acquiring newly issued shares.
The two transactions may be conducted at different valuations although both are likely to see the company valued at at least $1bn, the sources added.
The size of TPG’s prospective stake in Tide was unclear on Monday.
Earlier this year, Sky News reported that Tide had been negotiating the terms of an investment from Apis Partners, a prolific investor in the fintech sector, although it was unclear whether this would now proceed.
Tide has roughly 650,000 SME customers in both Britain and India, with the latter market expanding at a faster rate.
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Morgan Stanley, the Wall Street bank, has been advising Tide on its fundraising.
Tide was founded in 2015 by George Bevis and Errol Damelin, before launching two years later.
It describes itself as the leading business financial platform in the UK, offering business accounts and related banking services.
The company also provides its SME ‘members’ in the UK a set of connected administrative solutions from invoicing to accounting.
It now boasts a roughly 11% SME banking market share in Britain.
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Tide, which employs about 2,000 people, also launched in Germany last May.
The company’s investors include Apax Partners, Augmentum Fintech and LocalGlobe.
Chaired by the City grandee Sir Donald Brydon, Tide declined to comment on Monday.
TPG also declined to comment.
