KKR and Victory Park Capital (VPC), two US private equity and debt managers, have co-arranged a $175 million asset-backed securitisation of unsecured consumer loans originated by online lender Avant. The facility was priced earlier this month.
The transaction with KKR marks the first issuance of an asset-backed securitisation for Victory Park. The 144A securitisation is comprised of three tranches of unrated notes supported by an initial pool of Avant loans totalling about $195 million. The transaction will help Avant expand its platform that offers personalised credit options for consumers. Chicago-based Avant will continue to be the servicer for the underlying loans.
“This securitisation will further Avant’s ability to provide innovative and affordable financial products to middle class consumers in the growing personal lending industry,” said Karrie Truglia, vice president at VPC. “Since inception, Avant’s growth has been impressive and we look forward to continuing our close partnership as one of the company’s largest providers of institutional capital.”
“We are excited to partner with Victory Park Capital to continue to support Avant’s mission to transform consumer finance,” said Zach Jarvis, a principal on KKR’s credit team.
Both KKR and VPC have been involved in financings to Avant in the past. In 2013, VPC provided an initial credit facility to Avant, which now totals $500 million, to support the growth of its consumer loan portfolio. KKR has also provided $100 million in capital to support the launch of Avant’s Institutional Marketplace, a platform that enables institutional investors to purchase loans originated from Avant’s platform. VPC has also engaged in a long-term partnership agreement with Avant to purchase newly originated loans, with total originations now surpassing $2.2 billion since launching in January 2013.
VPC is a private alternative investment firm focusing on equity and debt investments in mid-market companies across a diverse range of industries. The firm was founded in 2007 and is headquartered in Chicago, with additional resources in London, Los Angeles, New York and San Francisco.
KKR is a global publicly-traded alternative investment firm that handles private equity, energy, infrastructure, real estate, credit and hedge funds. The firm is headquartered in New York, with six additional offices in the Americas, as well as 13 international outposts across Europe and Asia.