Barclays, the London-based banking giant, has announced its plans to acquire Best Egg, a leading personal loan origination platform in the U.S., for a sum of $800 million. The purpose of this acquisition is to augment Barclays’ presence in the U.S. market and to complement its partnership-driven credit card business. The bank confirmed the expected completion of the transaction by the second quarter of 2026, subject to regulatory approvals and customary conditions. Both Barclays U.S. Consumer Bank and Best Egg are based in Wilmington, Delaware.
Barclays Group CEO, C. S. Venkatakrishnan, expressed optimism about the acquisition due to the “deep and sophisticated” nature of the U.S. consumer finance market. He sees this market as a fertile ground for Barclays to grow and strengthen its digital and risk capabilities in the personal lending market. The addition of Best Egg will allow Barclays to reach more U.S. consumers through a proven platform that has been successful for over a decade, according to Denny Nealon, CEO of Barclays U.S. Consumer Bank.
Best Egg: A Snapshot
Since its inception in 2013, Best Egg, previously known as Marlette Funding, has demonstrated steady growth. The company primarily caters to prime borrowers and has a workforce of around 500 employees. Over the years, Best Egg has facilitated over $40 billion in personal loans to more than two million customers. It currently services an $11 billion loan portfolio, with expectations to facilitate more than $7 billion in personal loan originations via its platform this year.
Best Egg operates on a largely fee-based, capital-light revenue model. It is funded by private credit purchasers through securitization and forward-flow arrangements, where the loan purchaser commits to buying a certain volume of future loans in advance. Barclays aims to continue this funding model post-acquisition, retaining a small portion of Best Egg’s new lending flow on its balance sheet.
Financial Prospects and Integration Plans
The $800 million consideration is partly based on Best Egg’s tangible net assets of $275 million and represents a “high-single digit” price-to-earnings ratio. Barclays anticipates that the transaction will generate a return on investment, which is comparable to the bank’s three highest-returning U.K. businesses. It also expects the acquisition to boost the U.S. division’s return on tangible equity in 2027, assisting it in achieving its mid-teens target for this metric after 2026.
The purchase is expected to consume about 16 basis points of the bank’s Common Equity Tier 1 (CET1) capital upon completion. However, the bank’s planned sale of its American Airlines co-branded credit card receivables should more than offset this leveraging, leading to a net 6 basis-point increase in the bank’s CET1 ratio in the second quarter of 2026.
Leadership Perspectives on the Partnership
Paul Ricci, CEO of Best Egg, views the merger as a pivotal moment that amplifies their ability to reach more people through innovative lending solutions. He believes the transaction is a testament to the strength of the business built over the last 12 years and the trust earned from customers.
Denny Nealon, Barclays U.S. Consumer Bank CEO, expressed eagerness to welcome Best Egg’s customers, along with its “talented and experienced management team and colleagues” upon closing in 2026.
With this acquisition, Barclays is set to strengthen its foothold in the U.S. market, leveraging Best Egg’s robust platform and wide customer base. The move aligns with the bank’s strategic vision for growth and reflects its commitment to offering innovative financial solutions to its customers.
Source: Here
