Rithm Capital Corp., a global asset manager specializing in credit and real estate assets, announced it has closed a one-year forward flow agreement to acquire $1 billion in home improvement loans from fintech lender Upgrade, Inc. The loans, which total more than 100,000 originations to date, represent a significant portion of the nearly $2 billion Upgrade has originated in the space. 

The deal is part of Rithm’s strategic expansion into consumer lending. The firm sees strong long-term fundamentals for this category, which continues to benefit from homeowner demand for remodeling and renovation projects. 

“Home improvement loans are a rapidly growing segment of the consumer market, and one where our established capabilities can be particularly valuable,” said Michael Nierenberg, Chair, CEO, and President of Rithm Capital. “This agreement will help merchants nationwide expand their reach and provide their customers with access to the capital they need.” 

Upgrade’s co-founder and CEO Renaud Laplanche welcomed the partnership, noting that Rithm’s capital and scale will support further product expansion: “Rithm Capital is an ideal capital partner for us as we continue to grow our home improvement product. Their investment underscores the quality of the assets generated through our platform.” 

The transaction underscores a broader trend in which alternative asset managers are increasingly turning to fintech originators to access consumer loan exposure at scale. In June, Affirm reported $23 billion in funding capacity after renewing a forward flow agreement with Moore Capital Management, while Liberty Mutual Investments committed up to $5 billion to its expanded loan purchase program with the buy-now-pay-later platform.