SoFi has finalized an agreement with Blue Owl Capital worth at least $5 billion.
The mentioned deal with the asset manager, which was announced on Thursday, March 13, will allow SoFi to expand its loan platform business that refers pre-qualified borrowers to loan origination partners and originates loans on behalf of third parties.
Anthony Noto, chief executive officer of SoFi, stated that this is the largest single commitment for the company’s loan platform business and twice as large as the first commitment of the firm, allowing it to help more members get their money right while diversifying towards less capital-intensive and more fee-based revenue sources.
Ivan Zinn, head of alternative credit at Blue Owl, stated that the brand is excited to be partnering with SoFi to help meet the growing needs of customers through their loan platform business. It was also noted that SoFi has been expanding credit access to more people with innovative solutions.
The press release noted that SoFi’s two-year deal with Blue Owl reflects the growing demand for personal loans from members and debt investors, and boosts the efforts of the company, led by Anthony Noto, to diversify streams of revenue through less capital-intensive and more fee-based sources.
SoFi’s data shows that the company’s loan platform business originated loans worth $2.1 billion last year. This business allows the firm to earn fee income for originating loans on behalf of partners while retaining the rights to service. The relevant information is contained in the company’s press release.
It is worth mentioning that in the current month, SoFi announced that it has completed the secularization of the loan platform business for $697.6 million.
Chris Lapointe, the company’s finance chief, stated that as the firm’s personal loan products resonate with more and more people, the brand sees continued high demand for its loans in the capital market. It was also noted that this offering demonstrates the clear value of its loan platform business and its diversified funding strategy.
As we have reported earlier, SoFi Adds New Credit Cards to Its Product Line.
