SoFi Expands Loan Platform with Fortress' $3.2 Billion Backing
Deal News | Apr 17, 2025 | Fortress Investment Group LLC (NYSE:FIG)
SoFi Technologies, Inc. has announced a significant expansion of its Loan Platform Business through a $2 billion extension of its agreement with Fortress Investment Group. This extension builds upon an initial $2 billion agreement struck in October 2024, bringing Fortress' total commitment to over $5 billion. The additional $3.2 billion provided by Fortress is intended to enhance SoFi's ability to meet demand for personal loans and transition towards more fee-based revenue streams. According to SoFi CEO Anthony Noto, this collaboration highlights the success of SoFi's Loan Platform and its scalability. Fortress' Dominick Ruggiero emphasized that the partnership supports both consumer loan offerings and investment opportunities for Fortress' funds. SoFi's platform refers pre-qualified borrowers to loan origination partners and originates loans on behalf of third parties. SoFi continues to evolve as a comprehensive provider of digital financial services, serving over 10 million members. Fortress, managing $50 billion in assets, remains a key player in asset-based credit solutions, primarily focusing on businesses in the U.S. and Europe. This strengthened partnership underscores the broader trend of fintech companies leveraging asset management firms to expand operations and consumer finance offerings.
Sectors
- Financial Technology (Fintech)
- Asset Management
Geography
- United States – Both SoFi and Fortress have substantial operations in the United States, and the loan platform expansion is expected to primarily address the U.S. market.
- Europe – Fortress has a focus on originating business in Europe, indicating that some aspects of this expansion may impact European markets.
Industry
- Financial Technology (Fintech) – The article discusses SoFi, a fintech company, expanding its loan platform with the help of investment from Fortress.
- Asset Management – Fortress Investment Group is highlighted as a key asset management company involved in providing financial solutions and investments for SoFi's loan platform.
Financials
- $3.2 Billion – The value of the funding expansion agreement Fortress committed to SoFi's Loan Platform Business.
- $5 Billion – The total commitment by Fortress to SoFi's Loan Platform Business after the latest agreement.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| SoFi Technologies, Inc. | Target Company | Company | A fintech company known for offering a variety of financial services and products, now expanding its loan platform business. |
| Fortress Investment Group LLC | Investor/Private Equity Firm | Company | A global investment manager providing financial backing to SoFi's expanded loan platform. |
| Anthony Noto | CEO of SoFi | Person | CEO of SoFi who commented on the expansion and its alignment with SoFi's strategic goals. |
| Dominick Ruggiero | Global Co-Head of Asset Based Credit at Fortress | Person | Representative of Fortress expressing confidence in the partnership with SoFi. |
| Edge Focus | Technology-Driven Investment Firm | Company | Provides curated access to private credit, indicating involvement in technology areas related to the deal or similar operations. |