On Thursday, shares of SoFi Technologies, Inc. (NASDAQ:SOFI) experienced a 2.7% decline in the morning trading session. The drop followed a series of transactions by Silver Lake Technology Associates IV, L.P. (“SLTA IV”) and related entities, which included selling blocks of shares, with one as large as 19 million shares.
The sales occurred between December 2, 2024, and December 4, 2024, with SLTA IV and its related entities offloading approximately 31.2 million shares. Prices for these transactions ranged from $15.90 to $16.13. These disposals were executed through various indirect ownerships held by Silver Lake entities, including Silver Lake Partners IV, L.P. and Silver Lake Technology Investors IV (Delaware II), L.P.
The largest single block sale took place on December 4, 2024, with 19,389,745 shares sold at an average price of $16.011. Following this transaction, the ownership stake was reduced to 4,320,831 shares held indirectly through Silver Lake Partners IV, L.P. Additionally, on the same day, 4,320,831 shares were sold at $16.13, bringing the indirect ownership through the same entity down to zero.
Silver Lake, through its various entities, has a significant relationship with SoFi Technologies, Inc., as it may be deemed a director by deputization. Michael Bingle, a director at SoFi and Vice Chairman of Silver Lake Group, L.L.C., holds shares and restricted stock units as part of the company’s non-employee director compensation policy. According to the policy, the proceeds from the sale of these securities are expected to be remitted to Silver Lake and/or its limited partners.
The sale of these shares by Silver Lake is notable due to the firm’s role as a major shareholder and its connection to SoFi’s board through Michael Bingle. The transactions were reported to the SEC, and Silver Lake has committed to providing detailed information about the sales upon request, including the number of shares sold at each price point within the reported ranges.
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