Biggest Securitization in Marlette Funding’s History
- January 30, 2018
- Posted by: Mike Brown
- Category: Personal Loan News
Marlette Funding closed their first securitization of 2018, which also happened to be the biggest such deal in company history.
On Jan. 29, Marlette Funding, LLC, said it had just moved ahead with its fifth proprietary MFT securitization. Marlette Funding is the parent company to Best Egg, a company which helps people get unsecured personal loans.
In this securitization, about $495 million in Best Egg loans were financed through $464.3 million of MFT 2018-1 notes with four classes, as well as one class of certificates. Some of the loan sellers kept the risk on a portion of the certificates and notes.
More About the Securitizations
Although there have been four other securitizations, this is the first one to happen in 2018 for the company. In all, total issuance has reached $1.7 billion. A wide range of investors have come up with the capital for the securitizations.
Companies responsible for underwriting the transaction included Goldman Sachs, which was the structuring agent, as well as Citi, Morgan Stanley, and Deutsche Bank.
Mark Elbaum, chief financial officer at Marlette Funding, said 2018 is shaping up to be a great year for Best Egg.
“We believe that strong fundamentals, healthy performance, overall nimble and scalable infrastructure will result in a significant uptick in the existing business and open doors for new service and product launches,” he said.
Best Egg has been laying the groundwork necessary for continued growth and is aggressively and strategically pursuing that end. Elbaum said Best Egg is eyeing an increase in business and is looking forward to new service and product launches in the future.
Best Egg’s Background
Launched in 2014, Best Egg is enjoying success as it matches up people with loans that can improve their lives. The company has made it their mission to streamline the loan process for customers who have a good credit rating.
Since it first opened, Best Egg has hooked up more than 300,000 consumers with loans totaling more than $4.5 billion altogether.
The company also has made some key personnel changes in recent months. One of those changes included the promotion of Sabrina Basht to chief strategy officer. Basht began as general manager with Best Egg in 2014.
Another personnel change was the appointment of Elbaum to the role of chief financial officer. With the appointments of both Baum and Basht, Best Egg is pursuing aggressive growth to build upon the solid year it had in 2017.
Best Egg continues to improve upon its performance, with a 66 percent year-over-year growth in originations. That’s good news, especially when mixed with a mere 9 percent increase in year-over-year fixed operating expenses, and a 29 percent decrease in marketing costs for each loan.
By keeping customer service in focus and forming relationships with their investor base, Best Egg seems to be poised for more growth. Industry insiders have taken note of how strategic Marlette Funding’s moves have been so far.
“Marlette Funding has been very deliberate in building an investor base with deep strategic relationships across the capital structure,” Geoffrey Kott, Cross River Head of Capital Markets and Strategy, said.
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