Avant, a financial technology company focused on personal loans and credit cards, announced it has closed a $200 million personal loan securitization that earned AAA ratings from both Fitch Ratings and Kroll Bond Rating Agency (KBRA) for the first time in the company’s history.
The transaction, Avant’s 23rd personal loan securitization since its founding in 2012, also marks its seventh revolving deal. The company said the milestone reflects more than a decade of activity in the securitization market and long-standing investor relationships. The deal aligns with Avant’s broader funding diversification strategy, which aims to balance maturity dates and expand participation across a wider base of investors.
This is the first personal loan securitization from Avant to be rated by Fitch Ratings, in addition to KBRA, which has rated every Avant transaction since 2016. It is also the first time that notes in one of Avant’s personal loan securitizations have received AAA ratings from both agencies. The company said the ratings reflect recognition of its underwriting models and capital structure.
The transaction includes a 24-month revolving period, allowing Avant to reinvest principal as loans are repaid. The structure is expected to provide more than $500 million in financing capacity over the life of the deal. With this transaction, Avant now has approximately $2.5 billion in long-term funding commitments across its asset-backed facilities to support growth in its personal loan and credit card businesses.
Founded in 2012, Avant operates a data-driven platform that uses machine learning to provide financial products to middle-income consumers. Since launching personal loans in 2013 and credit cards in 2017, the company has connected more than 4 million unique customers to over $13.2 billion in personal loans and issued more than 2.9 million credit cards. Avant-branded credit products are issued by WebBank.
KEY QUOTE:
“Over more than a decade, we’ve built a funding model designed to support the business through different market environments. Transactions like this reinforce that foundation and allow us to continue to scale our business and support our customers.”
Kevin Friedrich, Chief Financial Officer Of Avant
