Avant Secures $200 Million Loan Securitization with AAA Ratings

FinTech company Avant announced the successful closing of a $200 million personal loan securitization, receiving inaugural AAA ratings from both Fitch Ratings and Kroll Bond Rating Agency (KBRA). This marks the company’s 23rd personal loan securitization since its founding in 2012 and its seventh revolving transaction.

First-Time AAA Ratings Signal Market Confidence

The AAA ratings from Fitch and KBRA represent a significant milestone for Avant, demonstrating growing market confidence in its underwriting models and capital structure. This is Avant’s first securitization rated by Fitch Ratings, while KBRA has rated each Avant transaction since 2016.

Expanding Funding Capacity and Supporting Growth

The transaction is expected to provide over $500 million in financing capacity over its 24-month life. Combined with existing asset funding commitments, Avant now has approximately $2.5 billion in long-term funding to support the continued growth of its personal loan and credit card businesses.

Avant’s Platform and Customer Base

Founded in 2012 and based in Chicago, Illinois, Avant operates an online lending platform offering unsecured personal loans and credit cards primarily to non-prime consumers. The platform utilizes data and machine learning to serve middle-income Americans. Avant’s typical personal loan borrowers have FICO scores between 550 and 720, with loan terms ranging from 12 to 60 months and loan amounts from $1,000 to $35,000.

Recent Developments

In January, Avant launched Credit Builder, a free financial health tool offering credit monitoring, goal setting, and identity theft support. Initial users demonstrate high engagement, with 87% being monthly active users and 75% experiencing credit score improvement or stability.

Transaction Details

The Avant Loans Funding Trust 2026-REV1 transaction includes six classes of notes totaling $200.0 million, collateralized by unsecured consumer loans originated through the Avant Platform. Initial hard credit enhancement levels range from 67.38% for the Class A Notes to 3.24% for the Class F Notes. The transaction features a three-month prefunding period and a two-year revolving period.

“Over more than a decade, we’ve built a funding model designed to support the business through different market environments,” said Avant Chief Financial Officer Kevin Friedrich. “Transactions like this reinforce that foundation and allow us to continue to scale our business and support our customers.”