Oportun Closes $400 Million Whole Loan Flow Sale Agreement with Castlelake, L.P. to Fund Personal Loan Production

Rhea-AI Summary

Oportun and Castlelake enter into a $400 million whole loan flow sale agreement, showcasing strong investor demand for Oportun's personal loan assets

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• Strong investor demand for Oportun's personal loan assets

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• None.

MINNEAPOLIS and SAN CARLOS, Calif., Aug. 08, 2023 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven fintech, and Castlelake, L.P., a global alternative investment firm specializing in asset-based opportunities, today announced the entry into a new $400 million whole loan flow sale agreement between the companies. Under the terms of the deal, Oportun is expected to sell Castlelake $400 million of personal loan production originated by Oportun over the next 12 months.

“This transaction highlights continued strong investor demand for Oportun’s high-quality personal loan assets,” said Jonathan Coblentz, Chief Financial Officer of Oportun. “Through this strategic relationship with Castlelake, we are also demonstrating our ability to access diverse sources of capital to drive continued profitable growth in our business.”

Oportun maintains a diverse set of capital sources including committed warehouse facilities, asset-backed securitizations, corporate-level debt financing, and whole loan sales.

Castlelake is an experienced investor in the consumer credit sector, having both acquired assets and provided asset-based private credit since 2015. The firm has invested more than $4 billion in such opportunities since 2015 and originated more than 3.5 million consumer receivable accounts.

“Through this bespoke private whole loan solution, we are pleased to support Oportun's continued growth while creating what we believe to be attractive exposure for our investors," said John Lundquist, Partner, Specialty Finance at Castlelake. "We are also proud to support their financially inclusive mission by funding what we believe to be affordably priced loans for consumers living in low-and moderate-income communities.”

About Oportun
Oportun (Nasdaq: OPRT) is a mission-driven fintech that puts its 2 million members' financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than $16.6 billion in responsible and affordable credit, saved its members more than $2.4 billion in interest and fees, and helped its members save an average of more than $1,800 annually. For more information, visit Oportun.com.

About Castlelake

Castlelake, L.P. is a global alternative investment manager focused on investments in real assets, specialty finance and aviation across the risk spectrum, from value-oriented to income and investment grade credit. Founded in 2005, Castlelake manages approximately $20 billion of assets. The Castlelake team comprises more than 200 experienced professionals, including 89 investment professionals, across seven offices in North America, Europe and Asia. For more information, please visit https://www.castlelake.com/.  

Forward Looking Statements

This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements as to the amount of personal loan production to be sold under the agreement, future results of operations and financial position, achievement of strategic priorities, ability to access diverse sources of capital and future growth opportunities are forward-looking statements. Many, but not all, of these statements can be identified by terms such as “expect,” “plan,” “anticipate,” “project,” "outlook,” “continue,” “may,” “believe,” or “estimate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Oportun has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. These risks and uncertainties include those risks described in Oportun's filings with the Securities and Exchange Commission, including Oportun's most recent annual report on Form 10-K and most recent quarterly report on Form 10-Q. The forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws, Oportun disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements.

Oportun Investor Contact
Dorian Hare
(650) 590-4323
ir@oportun.com

Oportun Media Contact
Usher Lieberman
(650) 769-9414
usher.lieberman@oportun.com

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