Latham Advises KKR on Exclusive Multi-Year Relationship for European Pay Later Receivables

Latham & Watkins has advised KKR on its exclusive multi-year agreement for up to €40 billion of eligible current and future Buy-Now Pay Later (BNPL) loans originated by PayPal in France, Germany, Italy, Spain, and the United Kingdom. 

Under the terms of the agreement, KKR’s private credit funds and accounts will acquire substantially all the European BNPL loan portfolio held on PayPal’s balance sheet at the close of the transaction and will also acquire future originations of eligible BNPL loans. PayPal will continue to remain responsible for all customer-facing activities associated with its European BNPL products.

A multi-disciplinary Latham team was led by London finance partners Jeremiah Wagner and Patrick Leftley, with associates Boin Cheong, Mathilde Deschanet, Delyth Hughes, Alima Laminu, and Niamh Nic Uileagoid.  Advice on tax matters was provided by partners Karl Mah, Ulf Kieker, and Ivan Rabanillo, with associates Aaron Bradley, Sam Duncan, Johannes Lieb, and Juan Rodríguez; on regulatory matters by counsel Becky Critchley and associate Sean Wells; on French law matters by partners Suzana Sava-Montanari and Thomas Vogel, counsel Etienne Gentil, and associates Jaime Hall, Florana Benabid, and Aurelien Lorenzi; on German law matters by counsel Frank Bierwirth; on Spanish law matters by partner Fernando Colomina, with associates Veronika Miskovichova, Huberto Sanchez-Tabernero, and Paloma Arizón; on US law matters by partner Ellen Marks, with associate Elliot Bromagen; on anti-trust matters by partner Jonathan Parker, with associate James Mathieson; and on data protection matters by associates Calum Docherty and Nara Yoo.