Victory Park Capital and KKR Lead an Inaugural $175 Million Asset-Backed Securitization of Avant Consumer Loans
Nov 19, 2015
CHICAGO – November 19, 2015 – 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.
About Victory Park Capital
Victory Park Capital Advisors, LLC (“VPC”) is a privately held, SEC-registered, global alternative investment firm. VPC provides opportunistic capital solutions to both emerging and established businesses with an expertise investing across various sectors where traditional sources of capital are limited. The firm’s differentiated offerings leverage an extensive network of industry relationships, disciplined deal origination, creative financing capabilities and broad credit structuring and special situations expertise. The firm was founded in 2007 and is headquartered in Chicago with additional offices in New York, Los Angeles and San Francisco. For more information, please visit www.victoryparkcapital.com.
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. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.