WILMINGTON, Del., Oct. 10, 2024 /PRNewswire/ – Best Egg today 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 LLC (“Fortress”) alongside Edge Focus, includes a forward-flow purchase commitment and purchases of back-book loans facilitated by the Best Egg platform.
Andrew Deringer, Chief Financial Officer of Best Egg, said: “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.”
Best Egg is a leading fintech company that specializes in helping people with limited savings feel more confident about their everyday finances through a suite of products and resources.
Over the past 10 years, Best Egg has delivered more than $30 billion in personal loans. In its 2024 Best-of Awards, NerdWallet recognized Best Egg’s personal loan as the best option for borrowers with good credit. Additionally, for the second consecutive year, Best Egg earned a place in J.D. Power’s top 10 for overall customer satisfaction. Best Egg’s reputation is built on providing flexible and accessible loan products that can help people build financial confidence and a stronger credit profile.
Under the 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 has committed to underwrite a fixed portion of loans facilitated through Best Egg’s personal loan program. The loans acquired in the back-book were facilitated by Best Egg starting in the fourth quarter of 2023.
Bart Stankiewicz, Managing Director at Fortress Investment Group, said: “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.”
Jeff Andrews, Chief Revenue Officer of Edge Focus, said: “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.”
About Best Egg
Best Egg is a leading fintech that drives financial confidence, providing flexible solutions to help people with limited savings adapt to their changing needs. Best Egg supports customers through a growing suite of personal loan, flexible rent, and financial health tools. Leveraging real-time customer insights and data engineering, Best Egg gives more people access to the resources they need to be money confident. For more information, visit www.bestegg.com.
About Fortress Investment Group
Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $48 billion of assets under management as of June 30, 2024, on behalf of approximately 2,000 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
The Fortress Asset-Based Credit business provides capital solutions to specialty finance companies, lending against and investing in a broad spectrum of consumer receivables, small commercial receivables and other contractual cash flow streams. With over two decades of experience as an active investor in the space, the team focuses primarily on originating businesses in the US and Europe with an asset class agnostic approach.
About Edge Focus
Led by co-founder and CEO Elliott Lorenz, Edge Focus is a fast-growing technology-driven investment management company with a proprietary credit engine powered by machine learning to underwrite, value, and purchase consumer loans. Edge Focus runs funds, special purpose vehicles, and separately managed accounts for its partners. For more information, visit www.edgefocuspartners.com.