MINNEAPOLIS, June 20,
2024 /PRNewswire/ -- Castlelake,
L.P. ("Castlelake"), a global alternative investment manager
specializing in asset-based private credit investments, has reached
an agreement to purchase up to $1.2
billion of consumer installment loans from Upstart (NASDAQ:
UPST), an artificial intelligence (AI) lending marketplace. The
purchase agreement consists of a 12-month forward flow
arrangement and follows a 2023 agreement with Upstart.
Upstart connects millions of consumers to more than 100
banks and credit unions that leverage Upstart's AI to approve more
borrowers at lower rates, while delivering the exceptional
digital-first experience customers demand. Castlelake's
experience acquiring or financing more than 17 million consumer
credit and small business loans informed its investment
decision.
"Castlelake is pleased to reach an additional purchase agreement
with Upstart and to continue supporting its mission to provide
affordable credit," said John
Lundquist, Partner, Specialty Finance at Castlelake. "We
believe that the utility of credit is becoming even more valuable
to consumers in the current economic environment, and that the
asset class presents an attractive investment opportunity for
investors seeking cash-flowing exposure."
"We're thrilled to keep building on the strong relationship that
we've established with the experienced team at Castlelake," added
Sanjay Datta, Chief Financial
Officer of Upstart. "This extension will help ensure a
resilient supply of capital to expand access to affordable
credit."
The transaction is a recent example of Castlelake's
participation in the consumer credit and specialty
finance sector, where it has both acquired assets and provided
asset-based private credit to consumer and small and medium-sized
business originators since 2015. Other specialty finance
transactions include a $200 million
private structured financing solution for the origination of
personal loan products, a £100 million facility commitment for
a fintech company focused on expanding its revenue-based financing
solution, and an agreement to provide credit to a tech-enabled
specialty finance lender for small and medium-sized businesses.
About Castlelake
Castlelake, L.P. is a global alternative investment manager
focused on asset-based investments in the private specialty
finance, real assets and aviation markets. Founded in 2005,
Castlelake manages approximately $22
billion of assets on behalf of a diversified global investor
base. The Castlelake team comprises more than 220 experienced
professionals, including 80 investment professionals, across seven
offices in North America,
Europe and Asia. For more information, please visit
www.castlelake.com.
Contact
Castlelake
Prosek Partners for Castlelake
Josh Clarkson/Remy Marin
+1 212 279 3115
jclarkson@prosek.com / rmarin@prosek.com
Castlelake Media Relations
media.relations@castlelake.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/castlelake-agrees-to-purchase-up-to-1-2-billion-of-consumer-installment-loans-originated-on-upstarts-platform-302177888.html
SOURCE Castlelake