(Bloomberg) -- Blue Owl Capital Inc. has agreed to buy up to $2 billion of consumer installment loans from financial technology lender Upstart Holdings Inc. as part of an effort to push into asset-based finance, according to a statement seen by Bloomberg News.
The private credit lender will snap up the debt over the next 18 months, through a so-called forward-flow agreement, where a buyer agrees to purchase loans before they have been originated. The deal also includes $290 million of personal loans that have already been handed out, according to the statement.
Apollo Global Management Inc.’s structured credit business Atlas SP Partners will provide debt financing for the loan purchases.
Blue Owl’s investment comes as the firm is trying to position itself as a one-stop shop for borrowers by moving into other credit products. Last month, it completed its acquisition of Atalaya Capital Management, which focuses on asset-based finance, a type of lending that allows firms to hand out debt backed by a borrower’s assets, like auto loans or equipment leasing debt.
Atalaya, founded by Ivan Zinn, structured and closed the deal with Upstart.
Full Story
