Technology investment firm Silver Lake is set to acquire a significant minority stake in the North American personal finance company Credit Karma.

The minority stake, valuing $500m, will be acquired from existing equity holders through an organised secondary process.

Other terms of the transaction were not divulged.

Following the deal, Silver Lake managing partner Mike Bingle will join the company’s board of directors while Credit Karma founder and CEO Kenneth Lin will continue to remain the largest shareholder.

Lin said: “As we planned for the future and our continued growth, we sought a partner that could support our growth trajectory and provide existing investors an opportunity to lock in some of the rewards they’ve earned for their support and hard work.

“I’m delighted to welcome Silver Lake and look forward to their support on the next stage of the Credit Karma journey.”

Credit Karma has more than 80 million members in North America, half of which are millennials.

It offers various products to enable its members to monitor and improve credit health, prepare and file income taxes, track and manage vehicle information as well as other financing solutions.

Furthermore, utilising advanced data modelling Credit Karma identifies the best financial products available for its members.

It reportedly originated more than $40bn in credit products such as credit cards, personal loans, mortgages and automotive financing.