Best Egg announced it has secured a $500 million purchase commitment to facilitate the growth of the company’s personal loan product. The purchase facility, led by funds managed by affiliates of Fortress Investment Group along with Edge Focus, includes a forward-flow purchase commitment and purchases of back-book loans facilitated by the Best Egg platform.
Best Egg is a leading fintech company helping people with limited savings feel more confident about their everyday finances through a suite of products and resources. Over the past ten years, Best Egg has delivered over $30 billion in personal loans.
Under this purchase facility – which is a joint venture between Fortress, a leading, highly diversified global investment manager, and Edge Focus, a fast-growing consumer credit-focused asset manager – each partner committed to underwrite a fixed portion of loans facilitated through Best Egg’s personal loan program. And the loans acquired in the back-book were facilitated by Best Egg starting in the fourth quarter of 2023.
KEY QUOTES:
“The purchase commitment we’ve secured from Fortress and Edge Focus will allow us to serve more American borrowers who are seeking a cost-effective solution to manage their revolving debt or complete an important life event. We remain committed to providing flexible and accessible capital to borrowers, and this partnership expands our capacity.”
-Andrew Deringer, Chief Financial Officer of Best Egg
“We are excited to back Best Egg’s continued growth. In today’s economic climate, we know that partnering with prudent originators of consumer credit who care about the utility and benefit of the credit extended to their borrowers is of the utmost importance. The strong alignment between Fortress, Edge Focus, and Best Egg on this transaction has created a tailored, private forward flow program that we believe offers our investors a compelling investment opportunity with steady cash flow.”
-Bart Stankiewicz, Managing Director at Fortress Investment Group
“We are fortunate to have two great partners in Fortress and Best Egg. Our expertise in modeling borrower behavior, trove of consumer credit data, and longstanding relationship with Best Egg helped ensure this is a transaction where everyone wins, especially the borrowers who will have expanded access to credit.”
-Jeff Andrews, Chief Revenue Officer of Edge Focus
