Barclays Acquires Best Egg for $800 Million
Barclays’ U.S. consumer bank has announced its acquisition of personal lending fintech Best Egg for $800 million. The deal, set to close in the second quarter of 2026, comes after Barclays’ previously announced sale of its American Airlines co-branded credit card receivables.
The acquisition is expected to bolster Barclays’ common equity tier 1 ratio by six basis points in the second quarter, a move that Barclays US CEO Denny Nealon believes will propel the bank’s US consumer banking business forward.
Complementary Business Ventures
Best Egg’s expertise in the personal loans market complements Barclays US’s co-branded credit card business. The acquisition will provide Barclays with digital and risk capabilities in a lucrative segment of the consumer finance market.
Since its inception in 2013, Best Egg has facilitated over $40 billion in loans to 2 million customers and is projected to facilitate $7 billion in loans in 2025 alone. CEO Paul Ricci expressed excitement about the merger, stating that it will enable the company to reach a broader audience with innovative lending solutions.
Continued Business Operations
Best Egg’s loan operations, which are funded through securitization programs and forward flow arrangements with alternative asset managers, generate fee-based income. Barclays plans to retain some of Best Egg’s new lending flow on its balance sheet, continuing the fintech’s successful business model.
The acquisition of Best Egg will not impact Barclays’ total distribution target of at least £10 billion between 2024 and 2026, as the bank remains committed to delivering value to its shareholders.
Strong Industry Partnerships
Best Egg’s growth has been supported by strategic partnerships, including a $500 million purchase facility led by Fortress Investment Group and Edge Focus, as well as a $150 million credit facility extended by Cross River Bank. These collaborations have strengthened Best Egg’s position in the lending market, making it an attractive acquisition target for Barclays.
The acquisition is pending regulatory approvals, marking a significant milestone in Best Egg’s journey as a leading player in the personal lending space.
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