Brokerage Charles Schwab held talks to acquire SoFi, the US-based online lender backed by social media company Renren and telecommunications group SoftBank, the Financial Times reported on Sunday.
A “foreign bank” made an initial $6bn offer for the company, two people familiar with the matter told the FT, and SoFi subsequently conducted discussions with Schwab and other potential buyers, but none were willing to meet its asking price of $8bn to $10bn.
SoFi originated as an online platform that helped students restructure their loans, but has since expanded to offer a range of financial services, including personal loans, insurance, wealth management, and mortgage and medical resident refinancing.
The company, which has raised about $1.9bn in equity funding since it was founded in 2011, now intends to target an initial public offering currently expected to take place in 2019.
Private equity firm Silver Lake led SoFi’s last round, a $500m series F in February this year that included SoftBank and asset manager GPI Capital, and which reportedly valued it at $4.3bn.
SoftBank had previously contributed to the company’s $1bn series E round in September 2015, investing alongside Renren, DCM, Third Point Ventures, Wellington Management Company, Institutional Venture Partners and Baseline Ventures.
Renren joined Baseline Ventures and DCM for SoFi’s $77m series B round in 2012. Wicklow Capital and Peter Thiel are also among its past investors.