SoFi secured agreements worth $3.2 billion for expansion to its Loan Platform Business.
The mentioned platform refers prequalified borrowers to loan origination partners and originates loans on behalf of third parties.
One of the agreements includes a $2 billion extension of an earlier agreement for personal loans with funds managed by affiliates of global investment manager Fortress Investment Group.
The other agreement involves SoFi originating an additional $1.2 billion in loans with technology powered by a joint venture between Fortress and technology-driven investment firm Edge Focus.
The mentioned information was released by the company last Thursday, April 17.
SoFi chief executive officer Anthony Noto said that the additional $3.2 billion commitment helps the firm better meet borrower demand for personal loans while moving the brand toward less capital-intensive and more fee-based sources of revenue. It was also noted that the company is building strong momentum for its Loan Platform Business in 2025 and beyond.
Dominick Ruggiero, global co-head of asset-based lending at Fortress, said that the extension of the agreement reflects the firm’s confidence in SoFi’s consumer loan product offerings.
It is worth mentioning that SoFi and Fortress Investment Group announced their original $2 billion Loan Platform Business agreement six months ago.
Last month, SoFi finalized an agreement with asset manager Blue Owl Capital worth at least $5 billion. This creates an opportunity to expand the Loan Platform Business.
