Blue Owl Capital partners with Upstart in a significant $2 billion agreement over 18 months.
- The collaboration involves the purchase of consumer loans, enhancing lending efficiency for borrowers and lenders.
- Blue Owl’s Alternative Credit strategy will manage the acquisition of a $290 million personal loan portfolio.
- Atalaya Capital Management structured this transaction, marking a strategic expansion for Blue Owl.
- ATLAS SP Partners backs the loan purchases with debt financing.
In a strategic move, Blue Owl Capital has entered into a partnership with Upstart, marking a significant development in the consumer credit sector. Upstart, an AI-driven lending marketplace, announced this $2 billion programmatic purchase agreement which spans over 18 months. This collaboration reflects both companies’ commitment to transforming the consumer lending process, making it more efficient for borrowers and lenders alike.
Within this partnership, Blue Owl’s Alternative Credit strategy plays a pivotal role. The plan involves the management of a personal loan portfolio worth $290 million, a transaction which has already been finalised. David Aidi, Co-Head of Financial Assets at Blue Owl Alternative Credit, expressed enthusiasm for supporting Upstart’s innovative lending processes. He emphasised the use of data science and extensive experience in the consumer space as critical elements in this journey.
Ray Chan, also Co-Head of Financial Assets at Blue Owl, highlighted the data-driven approach and the deep expertise of their team as essential contributions to this endeavour. The partnership aims to leverage Blue Owl’s expansive resources to support Upstart in its mission to provide more affordable credit options.
This transaction was meticulously structured by Atalaya Capital Management LP, an entity known for its focus on asset-based credit investments. With this deal, Blue Owl not only enhances its presence in alternative credit but also supplements its market-leading position in direct lending, as evidenced by the recent acquisition of Atalaya on September 30.
Further anchoring this transaction is ATLAS SP Partners, which provides the necessary debt financing to facilitate the loan acquisitions. This partnership signifies a substantial commitment to innovation in financial lending, promising to alter the landscape of consumer credit.
The Blue Owl and Upstart partnership marks a pivotal stride towards a more efficient and inclusive financial lending landscape.
