Upstart Announces $1.2B Forward-Flow Agreement with Fortress Investment Group
Deal News | May 06, 2025 | Fortress Investment Group LLC (NYSE:FIG)
Upstart, a key player in the AI lending marketplace, has secured a significant forward-flow commitment from Fortress Investment Group LLC. Fortress has agreed to purchase up to $1.2 billion in consumer loans originated via Upstart's platform by March 2026. This agreement underlines Fortress's strategy to invest in high-quality, risk-adjusted consumer credit assets and highlights Upstart's growing stature in AI-powered lending. Fortress, managing $50 billion in assets, aims to leverage Upstart's data-driven loan origination to offer scalable credit solutions throughout economic fluctuations. The integration of AI in this partnership is set to propel lending capabilities and provide competitive rates to borrowers. Citi will extend debt financing to facilitate Fortress's loan purchases. This collaboration is part of Upstart's strategic effort to maintain robust and varied capital avenues, fortifying its leadership in the lending marketplace.
Sectors
- Financial Services
- Technology
Geography
- United States – Both Upstart and Fortress Investment Group are based in the US, and their operations primarily focus within this geography.
- Europe – Fortress Investment Group also engages in investments within the European market.
Industry
- Financial Services – The article involves companies in the lending and investment sector, namely Upstart's AI lending marketplace and Fortress's asset management.
- Technology – Upstart utilizes AI technology for its lending platform, making technology a relevant industry for the article.
Financials
- $1.2 billion – The committed amount by Fortress Investment Group to purchase consumer loans via Upstart's platform.
- $50 billion – The assets under management by Fortress Investment Group as of December 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Upstart | Target | Company | An AI-driven lending marketplace connecting consumers with banks and credit unions. |
| Fortress Investment Group LLC | Bidding Company/Buyer | Company | A global investment manager dealing with credit and real estate, private equity, and permanent capital investment strategies. |
| Citi | Debt Financier | Company | Will provide debt financing to Fortress for the loan purchases. |
| Matt Biczak | Managing Director | Person | Managing Director at Fortress Investment Group, involved in strategic decisions regarding the agreement. |
| Sanjay Datta | Chief Financial Officer | Person | CFO at Upstart, commenting on the company's AI lending and private credit momentum. |