Upstart announced a new forward-flow commitment from funds managed by Castlelake, L.P., in which Castlelake has agreed to purchase up to $1.5 billion in consumer loans originated through the Upstart platform. Upstart is a lending marketplace that uses artificial intelligence to match consumers to credit products offered by banks and credit unions.
The agreement establishes a new 12-month forward flow arrangement, marking the third such transaction between the two companies. Upstart stated that the commitment strengthens its ability to provide consistent loan funding across varied market conditions.
Previous transactions between Upstart and Castlelake included an agreement to purchase up to $4 billion in consumer installment loans originated on the Upstart platform, followed by a commitment to purchase up to $1.2 billion of consumer loans in 2023.
Upstart collaborates with over 100 banks and credit unions that utilize its AI-driven credit decisioning models and cloud-based applications. According to the company, more than 90 percent of loans on its platform are fully automated. Upstart’s lending programs span personal loans, automotive loans, refinance loans, home equity lines of credit, and small-dollar relief loans.
KEY QUOTES
“We are delighted over the opportunity to expand our longstanding partnership with the experienced team at Castlelake through this new agreement. Their investment will help our platform to continue improving the lending experience and outcome for all borrowers. We thank them for their support and look forward to building on our success together.”
Sanjay Datta, Chief Financial Officer, Upstart
