Blue Owl Capital and Upstart Partner on Consumer Credit in $2 Billion Agreement
Upstart, the AI-driven lending marketplace, has announced a significant partnership with Blue Owl Capital. Blue Owl's Alternative Credit strategy has committed to purchasing up to $2 billion of consumer loans from Upstart's platform over an 18-month period. This agreement includes an initial acquisition of a $290 million personal loan portfolio, which was completed in September.
The collaboration aims to enhance the efficiency of consumer lending for both borrowers and lenders. Blue Owl's data science capabilities and experience in consumer finance will be leveraged in this partnership. ATLAS SP Partners, majority-owned by Apollo funds, will provide debt financing for the loan purchases.
This partnership represents one of Upstart's largest purchase commitments to date and is expected to accelerate their efforts in expanding access to affordable credit.
Upstart, il marketplace di prestiti guidato dall'IA, ha annunciato una partnership significativa con Blue Owl Capital. La strategia di credito alternativo di Blue Owl si è impegnata ad acquistare fino a 2 miliardi di dollari di prestiti al consumo dalla piattaforma di Upstart nell'arco di un periodo di 18 mesi. Questo accordo include un'acquisizione iniziale di un portafoglio di prestiti personali da 290 milioni di dollari, completata a settembre.
La collaborazione mira a migliorare l'efficienza del prestito al consumo sia per i mutuatari che per i finanziatori. Le capacità di data science e l'esperienza di Blue Owl nella finanza al consumo verranno sfruttate in questa partnership. ATLAS SP Partners, di proprietà della maggioranza dei fondi Apollo, fornirà finanziamenti per debito per gli acquisti di prestiti.
Questa partnership rappresenta uno dei più grandi impegni di acquisto di Upstart fino ad oggi e si prevede che accelererà i loro sforzi per ampliare l'accesso a crediti accessibili.
Upstart, el mercado de préstamos impulsado por IA, ha anunciado una asociación significativa con Blue Owl Capital. La estrategia de crédito alternativo de Blue Owl se ha comprometido a comprar hasta 2 mil millones de dólares en préstamos al consumidor de la plataforma de Upstart durante un período de 18 meses. Este acuerdo incluye una adquisición inicial de un portafolio de préstamos personales de 290 millones de dólares, que se completó en septiembre.
La colaboración tiene como objetivo mejorar la eficiencia del préstamo al consumidor tanto para los prestatarios como para los prestamistas. Las capacidades de ciencia de datos de Blue Owl y su experiencia en finanzas al consumidor se aprovecharán en esta asociación. ATLAS SP Partners, mayoritariamente propiedad de fondos de Apollo, proporcionará financiamiento de deuda para las compras de préstamos.
Esta asociación representa uno de los mayores compromisos de compra de Upstart hasta la fecha y se espera que acelere sus esfuerzos para ampliar el acceso a crédito asequible.
AI 기반 대출 마켓플레이스인 Upstart가 Blue Owl Capital과의 중대한 파트너십을 발표했습니다. Blue Owl의 대체 신용 전략은 Upstart 플랫폼에서 최대 20억 달러의 소비자 대출을 인수하기로 약속했습니다. 이 협약에는 2억 9천만 달러 규모의 개인 대출 포트폴리오의 초기 인수도 포함되며, 이는 9월에 완료되었습니다.
협력의 목적은 차용자와 대출자 모두를 위한 소비자 대출의 효율성을 향상시키는 것입니다. Blue Owl의 데이터 과학 능력과 소비자 금융 분야의 경험이 이번 파트너십에서 활용될 것입니다. ATLAS SP Partners는 Apollo 펀드가 대주주로 있는 업체로, 대출 구매를 위한 부채 자금을 제공합니다.
이번 파트너십은 Upstart에 있어 지금까지 가장 큰 구매 약속 중 하나를 나타내며, 저렴한 신용 접근성을 확대하기 위한 노력에 가속도를 붙일 것으로 예상됩니다.
Upstart, le marché de prêts dirigé par IA, a annoncé un partenariat significatif avec Blue Owl Capital. La stratégie de crédit alternatif de Blue Owl s'est engagée à acheter jusqu'à 2 milliards de dollars de prêts aux consommateurs sur la plateforme d'Upstart sur une période de 18 mois. Cet accord comprend une acquisition initiale d'un portefeuille de prêts personnels de 290 millions de dollars, qui a été finalisé en septembre.
La collaboration vise à améliorer l'efficacité du prêt à la consommation tant pour les emprunteurs que pour les prêteurs. Les capacités de science des données et l'expérience de Blue Owl dans la finance de consommation seront mises à profit dans ce partenariat. ATLAS SP Partners, majoritairement détenu par des fonds Apollo, fournira un financement par emprunt pour les achats de prêts.
Ce partenariat représente l'un des plus grands engagements d'achat d'Upstart à ce jour et devrait accélérer leurs efforts pour élargir l'accès à un crédit abordable.
Upstart, der KI-gesteuerte Kreditmarktplatz, hat eine bedeutende Partnerschaft mit Blue Owl Capital angekündigt. Die Alternative Kreditstrategie von Blue Owl hat sich verpflichtet, bis zu 2 Milliarden Dollar an Verbraucherkrediten von der Upstart-Plattform über einen Zeitraum von 18 Monaten zu erwerben. Diese Vereinbarung umfasst den anfänglichen Erwerb eines Portfolios von Verbraucherkrediten in Höhe von 290 Millionen Dollar, das im September abgeschlossen wurde.
Die Zusammenarbeit zielt darauf ab, die Effizienz der Verbraucherkredite sowohl für Kreditnehmer als auch für Kreditgeber zu verbessern. Die Datenwissenschaftskompetenzen und Erfahrungen von Blue Owl im Bereich Verbraucherkredite werden in dieser Partnerschaft genutzt. ATLAS SP Partners, die mehrheitlich im Besitz von Apollo-Fonds sind, werden die Fremdfinanzierung für die Kreditkäufe bereitstellen.
Diese Partnerschaft stellt einen der bisher größten Kaufverpflichtungen von Upstart dar und wird voraussichtlich ihre Bemühungen zur Erweiterung des Zugangs zu erschwinglichem Kredit beschleunigen.
- Blue Owl Capital commits to purchasing up to $2 billion of consumer loans from Upstart over 18 months
- Initial acquisition of a $290 million personal loan portfolio completed in September
- Partnership aims to improve efficiency in consumer lending process
- Represents one of Upstart's largest purchase commitments ever
- Expected to accelerate Upstart's efforts to expand access to affordable credit
- None.
Insights
This $2 billion agreement between Upstart and Blue Owl Capital is a significant development for Upstart's business model. The deal provides substantial funding for Upstart's AI-driven lending platform, potentially boosting loan originations and revenue. The initial
This partnership could enhance Upstart's liquidity and reduce its reliance on traditional banking partners, which has been a concern for investors. The 18-month commitment suggests a vote of confidence in Upstart's AI underwriting capabilities from a major institutional investor.
However, investors should note that while this agreement provides funding stability, it doesn't directly address profitability concerns or the challenging macroeconomic environment affecting consumer lending. The impact on Upstart's financials will depend on loan performance and the terms of the agreement, which aren't fully disclosed.
This partnership signifies a growing trend of alternative investment firms entering the consumer lending space, potentially reshaping the competitive landscape. Blue Owl's involvement, especially after its acquisition of Atalaya Capital Management, indicates increasing institutional interest in AI-driven lending platforms.
For the broader fintech sector, this deal could set a precedent for similar arrangements, potentially leading to more stable funding sources for AI-driven lenders. It may also accelerate the adoption of AI in credit decisioning across the industry.
Investors should monitor how this affects Upstart's loan origination volumes and whether it leads to expanded credit access for consumers, a key part of Upstart's mission. The involvement of ATLAS SP Partners for debt financing adds another layer of institutional backing, potentially reducing risk perception around Upstart's business model.
"We are excited to support Upstart’s efforts to make the consumer lending process dramatically more efficient for both borrowers and lenders,” said David Aidi, Co-Head of Financial Assets, Blue Owl Alternative Credit. “We are also proud to leverage the Blue Owl Alternative Credit team's data science effort and deep experience in the consumer space to join Upstart in this journey," said Ray Chan, Co-Head of Financial Assets, Blue Owl Alternative Credit.
“We’re thrilled to partner with the Blue Owl team in one of our largest purchase commitments ever,” said Sanjay Datta, CFO, Upstart. “Blue Owl’s ambitious vision and long-term focus will accelerate our efforts to expand access to affordable credit.”
The transaction was structured and closed by Atalaya Capital Management LP (“Atalaya”), an alternative credit manager that focused primarily on asset-based credit investments across consumer and commercial finance, corporate, and real estate assets. Blue Owl completed its acquisition of Atalaya on Sept. 30, representing a significant expansion of Blue Owl’s alternative credit presence and supplementing its market-leading position in direct lending.
ATLAS SP Partners, the warehouse finance and securitized products business majority owned by Apollo funds, will provide the debt financing for the loan purchases.
About Upstart
Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart’s AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates across races, ages, and genders, while delivering the exceptional digital-first experience customers demand. More than
About Blue Owl
Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives. With over
Forward Looking Statements Disclaimer
All forward-looking statements or information on this press release are subject to risks and uncertainties that may cause actual results to differ materially from those that Upstart expected. Any forward-looking statements or information on this site are only as of the date hereof. Upstart undertakes no obligation to update or revise any forward-looking statements or information on this press release as a result of new information, future events or otherwise. More information about these risks and uncertainties is provided in Upstart’s public filings with the Securities and Exchange Commission, copies of which may be obtained by visiting Upstart’s investor relations website at www.upstart.com or the SEC’s website at www.sec.gov.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241009387002/en/
Press:
press@upstart.com
Investors:
ir@upstart.com
Source: Upstart
FAQ
What is the value of the agreement between Blue Owl Capital and Upstart (UPST)?
When was the initial $290 million personal loan portfolio acquired by Blue Owl from Upstart (UPST)?
Who will provide debt financing for the loan purchases in the Upstart (UPST) and Blue Owl Capital agreement?
How does this partnership benefit Upstart (UPST)?
