Barclays’ U.S. consumer bank will acquire personal lending fintech Best Egg for $800 million, the bank said Tuesday.
The deal is expected to close in the second quarter of 2026, following a previously announced sale of Barclays' American Airlines co-branded credit card receivables.
The bank estimates the transactions, combined, will increase Barclays’ common equity tier 1 ratio by six basis points in the second quarter.
“This acquisition represents a significant step forward in our strategy to grow and diversify our US consumer banking business,” said Barclays US CEO Denny Nealon in a prepared statement. “As a leader in the personal loans market, Best Egg gives us the ability to reach more US consumers through a proven platform that has been successful for over a decade.”
Best Egg complements Barclays US’s co-branded credit card business, and the deal enables the bank to acquire both digital and risk capabilities in an “attractive” part of the stateside consumer finance market, the bank said.
The fintech has facilitated more than $40 billion in loans to 2 million customers since it was formed in 2013; and expects to facilitate $7 billion in 2025 alone.
“At Best Egg, we are driven by a mission to empower people with financial confidence and flexibility through our suite of lending products and financial health tools,” CEO Paul Ricci said in a prepared statement. “Joining forces with Barclays marks a pivotal moment in our journey – one that amplifies our ability to reach even more people through innovative lending solutions that truly make a difference.”
The transaction is “a testament to the strength of the incredible business we've built over the past 12 years, our talented team, and the trust we've earned from our customers,” Ricci said.
Best Egg loans are funded through securitization programs and forward flow arrangements provided by alternative asset managers, generating fee-based income. Barclays said it intends to continue this model and retain some of the fintech’s new lending flow on its balance sheet.
The Best Egg deal won’t affect Barclays’ total distribution target of at least £10 billion between 2024 and 2026, the London-based bank said.
Last year, Fortress Investment Group and tech-driven investment manager Edge Focus led a $500 million purchase facility to Best Egg to help grow its loan platform. Under the purchase facility, both Fortress and Edge Focus agreed to underwrite a fixed portion of loans facilitated through Best Egg. In 2023, Cross River Bank extended a $150 million credit facility to Best Egg to strengthen its flexible rent product.
The Barclays deal is subject to required regulatory approvals.
