2 days Ago By PYMNTS
SoFi has secured agreements that amount to a $3.2 billion expansion to its Loan Platform Business, which refers prequalified borrowers to loan origination partners and originates loans on behalf of third parties.One agreement includes a $2 billion extension of an earlier agreement for personal loans with fund managed by affiliates of global investment manager Fortress Investment Group, while the other 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, SoFi said in a Thursday (April 17) press release.The extension announced in the release builds on a $2 billion agreement between SoFi and Fortress that was announced in October, according to the release.“The additional $3.
2 billion commitment helps us better meet borrower demand for personal loans while moving SoFi towards less capital-intensive and more fee-based sources of revenue,” SoFi CEO Anthony Noto said in the release. “We’re building strong momentum for our Loan Platform Business in 2025 and beyond.”Dominick Ruggiero, global co-head of asset-based credit at Fortress, said in the release that the extension of the agreement reflects Fortress’ confidence in SoFi’s consumer loan product offerings.
“We are excited to expand this mutually beneficial partnership that helps increase the availability of personal loans for consumers and creates a compelling investment opportunity,” Ruggiero said.SoFi and Fortress Investment Group announced their original $2 billion Loan Platform Business agreement in October.In March, SoFi finalized an agreement with asset manager Blue Owl Capital that is worth at least $5 billion and will allow SoFi to expand its Loan Platform Business.
The company said at the time in a press release that the two-year deal with Blue Owl reflects an increasing demand for personal loans from members and debt investors.“Blue Owl is excited to be partnering with SoFi to help meet the growing needs of customers through their loan platform business,” Ivan Zinn, head of alternative credit at Blue Owl, said in the March 13 release. “SoFi has been expanding credit access to more people with innovative solutions.
We see a strong opportunity in being part of this growth through this strategic program.”The post SoFi Adds $3.2 Billion in Commitments to Loan Platform Business appeared first on PYMNTS.
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