Marlette Closes Proprietary Securitization Deal Worth $205 Million

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After a personal-loan bond sale last month, marketplace lender Marlette Funding closed its first proprietary securitization worth $205 million.  “MFT” consists of Best Egg collateral financed via three classes of Notes and one class of Certificates.

Best Egg is Marlette’s personal loan platform with $2 billion in originations since 2014. This transaction, done through Goldman Sachs was the second securitization of unsecured consumer loans originated by Cross River Bank on the platform. In July, Marlette securitized personal loan bonds worth $180 million in Single A notes rated by Kroll Rating Agency.

This news comes at a time as online lenders and marketplaces alike feel the need to diversify sources of capital. “Accessing the securitization markets represents the third major component of a diversified funding plan, which also includes building strong relationships with institutional investors and developing on-balance sheet asset backed credit facilities,” said Paul Ricci, CFO of Marlette Funding.

Last modified: April 20, 2019
Srividya KalyanaramanSrividya's work has appeared in publications like Money magazine, Advertising Age, FirstPost and The Economic Times. She has also dabbled in business intelligence solutions, and holds a Masters degree in Business and Economic Reporting from NYU.

Category: Marketplace Lending

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