NEWSSoFi’s Most Recent Personal Loan Securitization Placement Can Help Beauty Business Owners Rise
Oct. 14 2024, Published 1:22 a.m. ET
SAN FRANCISCO, May 21, 2024 — SoFi Technologies, Inc. (NASDAQ: SOFI) announced its successful placement of a $350 million personal loan securitization with funds and accounts managed by PGIM Fixed Income, a Prudential Financial (NYSE: PRU) company. This move strengthens SoFi's lending capabilities and unlocks valuable resources to support aspiring beauty entrepreneurs nationwide.
Personal loan securitization is a financial process that allows lenders like SoFi to raise capital and expand their lending capabilities. Essentially, securitization allows SoFi to free up capital tied up in existing loans and use it to fund new loans. That benefits both SoFi and potential borrowers like beauty entrepreneurs.
“We’ve continued to see healthy demand for our personal loan sales, providing us access to new forms of capital as SoFi helps more members get their money right," said SoFi CEO Anthony Noto.
SoFi is a member-centric, one-stop shop for digital financial services that helps members borrow, save, spend, invest, and protect their money. The finance lender has sold over $15 billion and securitized over $14.5 billion of personal loan collateral, underscoring the high quality of its personal loan portfolio.
“This partnership sits at the intersection of SoFi’s mission to its members and our commitment to providing tailored solutions for our clients. PGIM Fixed Income is proud to be a long-standing partner to this established platform. Our work together extends nearly 10 years from SoFi’s origins in student loans to today’s multi-channel business,” said Edwin Wilches, Managing Director, PGIM Fixed Income.
Financial Fuel for Beauty Businesses
One of these businesses is the beauty industry, which thrives on creativity and innovation. However, as a recent Beauty Independent article highlights, emerging brands often face funding challenges to propel their ventures forward.
“I initially believed that bootstrapping my company without seeking funding was the correct approach. However, I later realized that applying for a loan could have taken my company to the next level," said Blaq Luxury founder Cherice Williams.
Oui Beauty founder Kimberly Currie Dunn agreed, saying, “I firmly believe that, at some point, every business requires substantial funding to break through to the next level.”
Grants, traditional business loans, and venture capital can provide long-term financing to help beauty business owners scale. However, obtaining funds quickly from these can be difficult for many startups. SoFi's personal loan solutions bridge this gap by providing financial resources specifically tailored to meet the immediate needs of beauty business owners.
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Investing in the Future of Beauty
SoFi's commitment to financial inclusion empowers beauty business owners to chase their dreams and turn their creative visions into reality. With this latest securitization placement, SoFi is well-positioned to fuel the growth of the beauty industry and empower a new generation of entrepreneurs to thrive.
About SoFi
SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services on a mission to help people achieve financial independence and realize their ambitions. The company’s full suite of financial products and services helps its more than 8.1 million SoFi members borrow, save, spend, invest, and protect their money better by giving them fast access to the tools they need to get their money right, all in one app. SoFi also equips members with the resources they need to get ahead – like career advisors, credentialed financial planners, exclusive experiences and events, and a thriving community – on their path to financial independence.
SoFi innovates across three business segments: Lending, Financial Services – which includes SoFi Checking and Savings, SoFi Invest, SoFi Credit Card, SoFi Protect, and SoFi Insights – and Technology Platform, which offers the only end-to-end vertically integrated financial technology stack. SoFi Bank, N.A., an affiliate of SoFi, is a nationally chartered bank regulated by the OCC and FDIC, and SoFi is a bank holding company regulated by the Federal Reserve. The company is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams.
For more information, visit SoFi.com or download our iOS and Android apps.
About PGIM
PGIM is the global asset management business of Prudential Financial, Inc. (PFI). PFI has a history of over 145 years and through more than 30 market cycles. With 41 offices in 19 different countries (as of March 31, 2024), our more than 1,450 investment professionals are in key financial centers worldwide.
Our firm comprises multi-managers who collaborate with each other and specialize in a particular asset class with a focused investment approach. This gives our clients diversified solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit, and other alternatives. As a leading global asset manager with $1.34 trillion in assets under management (as of March 31, 2024), PGIM has built a foundation of strength, stability, and disciplined risk management.
For more information, visit pgim.com.
