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, an artificial intelligence (AI) lending marketplace. The purchase agreement consists of a 12-month forward flow arrangement and follows a 2023 agreement with Upstart.
“Castlelake is pleased to reach an additional purchase agreement with Upstart and to continue supporting its mission to provide affordable credit,” John Lundquist, partner, specialty finance at Castlelake, said. “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,” Sanjay Datta, chief financial officer of Upstart, said. “This extension will help ensure a resilient supply of capital to expand access to affordable credit.”
