Victory Park Capital (VPC), an asset management firm focused on middle market debt and equity investments, and KKR, a global investment firm, said it led an inaugural $175 million asset-backed securitization of unsecured consumer loans originated via Avant, an online lending platform.
The transaction with KKR marks VPC’s first issuance into the asset-backed securitization market. The inaugural 144A securitization is comprised of three tranches of unrated notes supported by an initial pool of Avant loans totaling approximately $195 million. The transaction will help Avant expand its platform that offers personalized credit options for consumers. Avant will continue to act as the servicer for the underlying loans.
“This securitization 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 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.
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 in support of Avant’s Institutional Marketplace, a platform that enables institutional investors to purchase loans originated off of Avant’s platform. VPC has engaged in a long-term partnership agreement with Avant to purchase newly originated loans, a value which now exceeds $2.2 billion in total originations since launching in January 2013.