SoFi secures $2bn deal with Fortress Investment Group to expand loan platform business
US consumer fintech SoFi has secured a $2 billion loan platform business agreement with Fortress Investment Group, a global investment manager headquartered in New York, to help fuel the company’s personal loan origination activities.
SoFi secures $2 billion loan platform business agreement with Fortress
The firm says it will utilise the funds managed by affiliates of Fortress to “expand SoFi’s capabilities in its loan platform business, where the company refers pre-qualified borrowers to loan origination partners as well as originates loans on behalf of third parties”.
Fintechs frequently collaborate with private credit lenders to finance consumer loans. Fortress recently arranged a similar $500 million deal with Best Egg to enable the firm to expand its personal lending product.
Speaking on the deal, Anthony Noto, CEO of SoFi, says the company’s loan platform business is an “important part of our strategy to serve the financial needs of more members and diversify toward less capital-intensive and more fee-based sources of revenue”.
SoFi, which serves 8.8 million members, operates across three business segments: lending, financial services, and technology, offering a full suite of consumer financial products alongside its technology platform, which provides partners with an end-to-end vertically integrated financial technology stack.
