Plastic Fantastic

Private credit is swiping into consumer finance, with firms increasingly buying up credit card balances and other household debt as a new source of yield, often via forward-flow deals that funnel loans from fintech originators to institutional capital. Deals like Bilt shifting roughly $1.2 billion of card debt to private credit backers (and larger partnerships spanning personal, auto, and student loans) highlight how GPs are moving down the stack, effectively turning everyday spending into investable product. In 2025, roughly 25% of newly originated personal loans were funded by private credit forward-flow arrangements, compared to 6% the year before, according to Jefferies. The appeal is clear: granular, high-interest cash flows in a market where corporate lending looks crowded. But the trade comes with familiar caveats - dependence on fintech pipelines, rising delinquencies if the cycle turns, and the risk that funding lines can be pulled just as quickly as they’re extended. Right now, private credit looks set to become consumer debt’s new flexible friend, turning APR into IRR.