Avant, a credit-first financial technology company that provides access to innovative financial solutions to underserved non-prime consumers, secured $250 million of corporate debt and redeemable preferred equity from Ares Management Alternative Credit funds.
“Avant has established a track record of success over the course of a decade of delivering on our mission to empower customers to reach their goals with innovative solutions designed to move their financial lives forward,” Matt Bochenek, CEO of Avant, said. “This capital infusion from Ares will further fuel our credit portfolio and next-gen platform, enabling stronger competitive advantage.”
This funding follows a $250 million securitization in September and several other success markers in 2022. In January, the Avant Credit Card, issued by WebBank, surpassed one million customers. In August, the financial technology company unveiled a new multi-year exclusive partnership with Major League Soccer (MLS) for a co-branded fan affinity credit card that will be powered by Avant and issued by WebBank.
“We are excited to support the Avant platform through this next phase of growth,” Jeffrey Kramer, partner in the Ares Alternative Credit strategy, said. “Our flexible capital base helped us meet Avant’s evolving needs, and we look forward to continuing our long-standing relationship.”
Avant’s September securitization brought the total amount of asset-backed debt financing commitments secured by Avant in 2022 to $1.1 billion and Avant’s total commitments to more than $1.6 billion to support its consumer credit portfolios. These commitments illustrate Avant’s ability to successfully navigate economic cycles and increase the resiliency of Avant’s funding profile. To date, Avant has provided access to over $9 billion in credit serving almost three million customers.
FT Partners served as exclusive strategic and financial advisor to Avant and its board of directors on this transaction.
