Upstart and Blue Owl Team Up on Consumer Credit in $2Bn Agreement

The AI lending marketplace, Upstart (UPST) announced a loan purchase agreement with funds managed by Blue Owl Capital. Based on the terms of the agreement, over the next 18 months, Blue Owl’s Alternative Credit strategy will acquire up to $2Bn in consumer loans through the Upstart platform. The agreement includes an initial acquisition of a $290M personal loan portfolio, which closed in September.

“We are excited to support Upstart’s mission to significantly improve the consumer lending process for both borrowers and lenders,” said David Aidi, Co-Head of Financial Assets at Blue Owl Alternative Credit. Ray Chan, Co-Head of Financial Assets at Blue Owl Alternative Credit, added, “We’re proud to apply our data science expertise and extensive experience in the consumer credit space to work alongside Upstart on this journey.”

Sanjay Datta, CFO of Upstart, expressed enthusiasm for the partnership, stating, “We’re excited to collaborate with the Blue Owl team on one of our largest purchase commitments to date. Their forward-thinking approach and long-term vision will help us expand access to affordable credit.”

ATLAS SP Partners, majority-owned by Apollo funds, will provide the debt financing for the loan purchases through its warehouse finance and securitized products business.