Blue Owl to Buy $2B of Consumer Loans from Upstart
Blue Owl Capital has committed to purchasing up to $2 billion of consumer loans from Upstart, an AI-driven fintech lender, over 18 months. The deal includes an initial acquisition of a $290 million personal loan portfolio, which closed in September.
The transaction was structured and closed by Atalaya Capital Management LP, the alternative credit specialist Blue Owl recently acquired in a $450 million deal in July.
ATLAS SP Partners, the warehouse finance and securitized products business majority owned by Apollo funds, will provide the debt financing for the loan purchases.
“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.
Founded in 2012 and headquartered in San Mateo, CA, Upstart’s platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar “relief” loans.
With over $192 billion in assets under management Blue Owl invests across credit, GP strategic capital, and real estate.