Mastercard Makes Private Equity Debut With $550 Million Deal

Group 1 - The Mastercard Foundation has established itself as a significant institutional investor, diversifying its portfolio beyond its $50 billion stake in Mastercard [1][2] - Mastercard Foundation Asset Management (MFAM) has acquired private equity interests from Eastman Kodak's pension plan, valued at $764.4 million for $550.6 million, with the transaction expected to finalize by year-end [2] - MFAM, as Mastercard's largest shareholder, plans to sell off 13% to 15% of its Mastercard stock annually over the next seven years to further diversify its investments [2] Group 2 - The shares given to the Mastercard Foundation at the time of Mastercard's IPO in 2006 have appreciated over 13,000%, making it one of the top performers on the S&P 500 [3] - In the payments industry, optimizing payment flows is crucial for merchants to avoid transaction declines, especially as over 70% of consumers store payment credentials on merchant sites [4][5] - Merchants are focusing on secure and updated payment solutions to reduce transaction declines and improve conversion rates [6]