UK-based lender Barclays has unveiled its plans to acquire Best Egg, a US-based personal loan origination platform, for $800m.
The acquisition will be executed through Barclays’ US subsidiary, Barclays Bank Delaware, operating as Barclays US Consumer Bank (USCB).
The transaction is expected to be completed in the second quarter of 2026, subject to regulatory approvals and other conditions.
Barclays group chief executive CS Venkatakrishnan said: “The deep and sophisticated US consumer finance market offers rich prospects for growth at Barclays.
“The Transaction will strengthen our US Consumer Bank and offers an exciting opportunity to significantly bolster our capabilities in personal lending.”
Established in 2013, Best Egg has emerged as a significant player in the direct-to-consumer personal loan market, focusing on prime borrowers.
It has facilitated over $40bn in loans to more than two million customers through its loan origination platform, and currently services around $11bn in personal loans.
Best Egg is projected to generate more than $7bn in personal loan originations this year.
It funds the loans through various structures, including securitisation programmes and forward flow arrangements, which are supported by alternative asset managers.
Upon closing, Barclays plans to continue Best Egg’s model and retain a small portion of its new lending flow on its balance sheet.
Barclays US Consumer Bank chief executive Denny Nealon said: “This acquisition represents a significant step forward in our strategy to grow and diversify our US consumer banking business.
“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.
“We look forward to welcoming Best Egg’s customers as well as its talented and experienced management team and colleagues upon closing in 2026.”
Barclays said that the acquisition aligns with USCB’s existing credit card business, which offers unsecured personal lending through co-brand card partnerships.
Through the acquisition, the UK lender aims to enhance its digital and risk management capabilities within the US consumer finance sector.
Barclays anticipates that the acquisition will yield a strong return on investment over time, comparable to its top-performing UK businesses.
Also, the UK company confirmed that this transaction will not alter its commitment to a total distribution target of at least £10bn ($13.2bn) between 2024 and 2026.
Best Egg CEO Paul Ricci said: “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. 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.
“This 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.”
Earlier this year, the UK’s Financial Conduct Authority (FCA) imposed a £42m ($56.4m) fine on Barclays for failings in financial crime risk management.
The fine covered two cases: Barclays Bank UK’s handling of WealthTek and Barclays Bank’s dealings with Stunt & Co.
