CircleBack Lending has completed its first securitization of consumer loans. The company reported $106 million was completed by Jefferies, an investment banking firm. CircleBack revealed an agreement with Jefferies in 2014 to securitize up to $500 million in loans in the coming years. CircleBack stated this was a “major milestone” as it scales its direct lending business.
“This successful bond offering marks the first of what we believe will be many more to come with Jefferies and others,” said CircleBack’s CEO Michael Solomon. “This successful bond offering marks the first of what we believe will be many more to come with Jefferies and others.”
A growing number of direct lenders are securitizing loans. SoFi, a direct lender that targets student loans and mortgages recently closed a securitization of over $400 million and expects to securitize over $1 billion in Q3.
Brian McGrath, Co-Head of Asset Backed Securities at Jefferies, predicts that securitizations of multiple online lending platform collateral will continue to increase as institutional investors become more involved in purchasing consumer loan assets. ” We are pleased to help CircleBack achieve its objectives,” McGrath said.
CircleBack Lending was founded by Michael Solomon and Todd Walters. The platform has its roots in the beginning years of peer to peer lending. The partners were previously involved with Loanio, a peer to peer lending platform that stumbled when the SEC determined that registration was required to operate. CircleBack provides consumer loans from $3001.00 to $35,000 all funded by institutional investors.