Best Egg lands $500m purchase facility to expand personal loan product
Best Egg, a US consumer financial technology platform, has secured a $500 million purchase facility to help support the expansion of the firm’s personal loan product.
Best Egg secures new $500 million purchase facility
The facility is led by funds managed by affiliates of Fortress Investment Group, a global investment manager from New York, and Edge Focus, a consumer credit-focused asset manager based in Chicago.
The deal includes a forward-flow purchase commitment and purchases of back-book loans facilitated by the Best Egg platform starting in Q4 2023.
Under the agreement, each supporting partner has committed to underwrite a “fixed portion” of loans generated through Best Egg’s personal loan programme.
Headquartered in Wilmington, Delaware, Best Egg leverages real-time customer insights and data engineering to provide its customers with a suite of personal loan products, flexible rent offerings, and financial health tools. The company claims to have delivered over $30 billion in personal loans since its launch in 2014.
The purchase facility builds on the company’s $225 million Series E round completed in March 2022, led by the Healthcare of Ontario Pension Plan (HOOPP).
Andrew Deringer, CFO of Best Egg, states that the commitment will enable the fintech to serve “more American borrowers” who are seeking to “manage their revolving debt or complete an important life event”.
