Victory Park Capital (VPC), an asset management firm focused on middle-market debt and equity investments, and KKR, a leading global investment firm, announced today the $175 million asset-backed securitization of unsecured consumer loans originated via Avant, a leading online lending platform, that was priced on Nov. 13.
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.
Victory Park Capital (VPC) is a privately held registered investment advisor dedicated to alternative investing through the management of its investment vehicles. As specialists in credit and private equity investments, VPC focuses on middle market companies across a diversified range of industries. Whether as a lender or a control investor, VPC seeks to identify opportunities where it believes the potential for reward outweighs the risks entailed. Founded in 2007, VPC is headquartered in Chicago with additional resources in London, Los Angeles, New York and San Francisco.
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business.