WILMINGTON — Best Egg continues to grow its cutting-edge loan platform by signing a $1 billion loan agreement with investment firm AB CarVal by the end of 2024.
For the financial technology lending company, the deal is among the largest known in 2024 after Best Egg landed another deal for half the value with Fortress Investment Group earlier in the fall.
Through this new deal, AB CarVal will help Best Egg serve more clients interested in vehicle equity loans. Through this new deal, AB CarVal will help Best Egg serve more clients interested in vehicle equity loans with AB CarVal’s commitment to buying a fixed number of loans in Best Egg’s portfolio. These loans would allow customers to leverage the car’s value as collateral to borrow money with AB CarVal as the underwriter.
“This funding from AB CarVal means we can help more people who need a smart and cost-effective way to handle debt or pay for important expenses,” Best Egg Chief Financial Officer Andrew Deringer said in a prepared statement. “We’re committed to making it easier for people with limited savings to access money when they need it, and this partnership helps us do just that.”
With private credit deals, fintech companies like Best Egg tout the ability to offer flexible loans through a faster process compared to other traditional methods. It’s also a growing market as Stanley Morgan reported that private credit expanded to $1.5 trillion at the start of 2024. The same economic forecast predicts that it’s estimated to soar to $2.6 trillion by 2029.
AB CarVal is a global investment manager that is headquartered in Minneapolis, with $19 billion assets under management. Originally known as CarVal, it was acquired by AllianceBernstien in 2022 at a time when the investment fund had dealt with distress credit, renewable energy infrastructure, specialty finance and transportation investments.
“As long-time investors in asset-based financial products, we are pleased to support Best Egg’s growth, recognizing how important it is to work with companies that prioritize responsible lending in today’s economy,” AB CarVal Principal Angie Fenske said in a prepared statement.
In recent years, Best Egg has experienced tremendous growth by adding hundreds of new employees, many within driving distance of its headquarters in the Brandywine Hundred. In 2024, the company expanded its vehicle equity loan program that offered cash-out refinancing options to the value of a car or for additional funds. Now, that program can be accessed by 90% of people in the United States.
Deringer previously told the Delaware Business Times that the company expects the vehicle equity loan program to enjoy steady growth in the year to come since the launch of its vehicle equity loan program.
