Stilt Acquisition: Key Details, Impact, and What Comes Next

JG Wentworth's acquisition of Stilt Inc.'s digital lending platform marks a significant step in the consumer finance industry. This strategic move aims to enhance JG Wentworth's capabilities in providing financial solutions, leveraging Stilt's advanced technology and extensive data sets. The integration is expected to offer a seamless borrowing experience, benefiting a broader range of consumers.

What Is Stilt?

Founded in 2015, Stilt offers a range of financial products including personal loans, auto loans, student loan refinancing, and HELOCs. The company also provides comprehensive immigration services such as visa and green card consultations, renunciation packages, and connections to top immigration lawyers. Stilt differentiates itself by offering loans with no minimum credit score requirements and specialized credit cards for international students. Their customer-centric approach has garnered over 20,000 satisfied customers in 150+ countries.

Who Acquired Stilt?

JG Wentworth is a financial services company known for providing customized financial solutions and personal support to customers. The company specializes in purchasing structured settlements, offering debt relief programs, and providing personal loans. Additionally, they offer annuities, pre-settlement funding, and lottery prize cash-outs. With over 30 years of experience and an A+ rating from the Better Business Bureau, JG Wentworth has served over 150,000 customers, establishing itself as a trusted and influential provider in the financial services industry.

When Was Stilt Acquired?

JG Wentworth acquired Stilt on December 5, 2022. This acquisition occurred during a period of significant digital transformation in the financial services industry. Fintech companies were increasingly integrating advanced data analytics and digital capabilities to offer more personalized and efficient financial solutions. The timing aligns with JG Wentworth's strategic move to expand its product offerings and enter the consumer lending market, leveraging Stilt's robust digital platform and extensive data sets to better compete in the evolving financial landscape.

Why Was Stilt Acquired?

• Market Expansion: The acquisition of Stilt Inc.'s digital lending platform allows JG Wentworth to enter the consumer lending space, expanding its market presence beyond its existing services like structured settlement payment purchasing, annuity payment purchasing, lottery and casino payment purchasing, and debt resolution services. Additionally, JG Wentworth plans to introduce personal loans for consumers with less-than-perfect credit, complementing its debt resolution operations and broadening its market reach.
• Technology Integration: JG Wentworth will integrate Stilt’s digital lending platform, which includes industry-leading digital capabilities, a user-friendly experience, and rapid underwriting decisions. The platform also brings proprietary data sets from $5 billion in loan applications and 2.5 million bank transactions. Furthermore, Priyank Singh, the new CTO, will lead technology and product development for JG Wentworth's Digital Lending initiative, focusing on building technology platform advancements.
• Competitive Advantage: The combination of JG Wentworth’s nationally recognized brand with Stilt’s FinTech platform and proprietary consumer credit data positions JG Wentworth uniquely in the market. This integration allows the company to offer digital and fully automated loan origination models, enhancing its product offerings and customer experience. The expertise of Priyank Singh in technology and product development is expected to provide JG Wentworth with a competitive edge in offering a suite of unique digital financial services.

Acquisition Terms

• Acquisition Price: The acquisition price was not publicly disclosed.
• Payment Method: The transaction involved raising $322 million in debt and equity.
• Key Conditions or Agreements:
  • Stilt's proprietary data sets, including over $5 billion in loan applications and more than 2.5 million bank transactions, will be integrated with JG Wentworth's database.
  • Consumers will have the option to choose between a fully digital and automated loan origination model or one aided by JG Wentworth’s national call center.
  • Stilt CEO Rohit Mittal will serve as Senior Vice President of Lending at JG Wentworth.
  • Priyank Singh, co-founder and ex-CTO of Stilt, is appointed as Chief Technology Officer of JG Wentworth.
  • JG Wentworth plans to introduce personal loans for consumers with less-than-perfect credit.

Impact on Stilt

The acquisition of Stilt by JG Wentworth has led to significant changes in operations and management. Rohit Mittal, the CEO of Stilt, has transitioned to the role of Senior Vice President of Lending at JG Wentworth, while Priyank Singh, co-founder and former CTO of Stilt, has been appointed as the new Chief Technology Officer. This integration aims to leverage Stilt's advanced digital lending platform and extensive data sets, enhancing JG Wentworth's capabilities in consumer lending. The combined expertise is expected to drive technological advancements and streamline product development, positioning JG Wentworth as a leader in the digital lending space.

In terms of product offerings, the acquisition allows JG Wentworth to introduce a hybrid loan origination model, providing both fully digital and personalized customer service options. This move is set to expand their market reach, particularly targeting consumers with less-than-perfect credit. Employee reactions have been generally positive, with the Stilt team being welcomed into JG Wentworth, fostering a collaborative environment. Customer feedback, while not explicitly detailed, is anticipated to be favorable due to the enhanced user experience and rapid underwriting decisions. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.