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Private equity buys into subprime lender OneMain

Photo by Jared C. Tilton/Getty Images

Private equity firms Apollo Global Management and Värde Partners have agreed to acquire a 40.5% stake in OneMain Financial, the Indiana-based subprime lender spun off by Citigroup after the financial crisis, from Fortress Investment Group. No financial terms were disclosed, but earlier press reports suggested a sale price of between $1.5 billion and $2 billion.

Why it matters: OneMain is one of the shadow banking world's biggest players, having provided auto and other sorts of personal loans to millions of customers through more than 1,600 branches in 44 states.