- Key insight: Barclays sees the acquisition as a way to reach more U.S. consumers and complement its large, partnership-driven credit card business.
- Supporting data: Best Egg has facilitated over $40 billion in personal loans since 2013 and currently services an $11 billion loan portfolio.
- Expert quote: Barclays Group CEO C. S. Venkatakrishnan said the “deep and sophisticated” U.S. consumer finance market offers “rich prospects for growth.”
- Forward look: The $800 million transaction is expected to close in the second quarter of 2026, helping Barclays meet its mid-teens return target for its U.S. division after next year.
Overview bullets generated by AI with editorial review
Barclays announced today that it had agreed to acquire Best Egg, a direct-to-consumer personal loan origination platform, for $800 million in a bid to expand the London-based bank’s U.S. presence.
The bank
Barclays Group CEO C. S. Venkatakrishnan said in the acquisition announcement that the “deep and sophisticated” U.S. consumer finance market offers “rich prospects for growth at Barclays.” It will also strengthen the bank’s digital and risk capabilities in the personal lending market.
The bank sees Best Egg as complementary to its partnership-driven credit card business.
Denny Nealon, CEO of Barclays U.S. Consumer Bank, said Best Egg will allow the bank to “reach more U.S. consumers through a proven platform that has been successful for over a decade.”
Best Egg’s scale and financial profile
Barclays said Best Egg has demonstrated consistent growth since its establishment in 2013. The company, formerly known as Marlette Funding, focuses on prime borrowers and has roughly 500 employees.
Since its founding, Best Egg has facilitated over $40 billion in personal loans to more than two million customers, according to the acquisition announcement.
Best Egg currently services approximately $11 billion in personal loans, and the company expects to facilitate more than $7 billion in personal loan originations via its platform this year.
The fintech’s revenue model is largely fee-based and capital-light, according to Barclays. Private credit purchasers fund the company through securitization and so-called forward-flow arrangements, in which the loan purchaser commits to purchasing a certain volume of future loans ahead of time.
Barclays anticipates continuing this funding model once the acquisition is complete, though it also expects to retain a small portion of Best Egg’s new lending flow on its own balance sheet.
Financial and integration outlook
The $800 million consideration is based partly on Best Egg’s tangible net assets of $275 million and represents a “high-single digit” price-to-earnings ratio, according to Barclays.
Barclays expects the transaction to generate a return on investment comparable to the bank’s three highest-returning U.K. businesses.
The bank also expects the acquisition to boost the U.S. division’s return on tangible equity in 2027, helping it meet its stated mid-teens target for this metric sometime after 2026.
Barclays also expects the acquisition to help the full group’s return on tangible equity and earnings per share in 2027.
The bank expects the deal to consume about 16 basis points of the full group’s Common Equity Tier 1 capital upon completion.
The bank had previously announced it would sell its American Airlines co-branded credit card receivables, which should more than offset this leveraging. The bank expects the two deals to cause a net 6 basis-point increase in the full group’s CET1 ratio in the second quarter of 2026.
Companies’ leadership hails partnership
Paul Ricci, CEO of Best Egg, said the merger was a pivotal moment that “amplifies our ability to reach even more people through innovative lending solutions that truly make a difference.”
Ricci, who succeeded founding CEO Jeffrey Meiler, said the transaction is a testament to the strength of the business built over the last 12 years and the trust earned from customers.
Barclays U.S. Consumer Bank CEO Denny Nealon said the bank looks forward to welcoming Best Egg’s customers, as well as its “talented and experienced management team and colleagues” upon closing in 2026.