SoFi lands $5bn agreement with Blue Owl Capital to fund loan platform business
SoFi Technologies is set to expand its loan platform business via a new agreement of up to $5 billion finalised with Blue Owl Capital.
SoFi finalises $5bn loan platform business agreement with Blue Owl
The agreement is the largest of its kind secured by SoFi to date, being more than double the deal the US-based fintech previously sealed with Fortress Investment Group in October.
Blue Owl will leverage its managed funds, which currently total over $250 billion, to finance personal loans originated through SoFi’s loan platform business.
This business acts as a consumer lending middleman, referring pre-qualified borrowers to loan origination partners. Lending out $2.1 billion last year, SoFi also originates loans on behalf of third parties.
The two-year deal with Blue Owl aims to “help more members get their money right while also diversifying toward less capital-intensive and more fee-based sources of revenue”, according to SoFi CEO Anthony Noto.
Instead of holding loans on its own books, the fintech makes money through fees and servicing, rather than interest income.
Lending is one of three core business segments operated by SoFi, alongside financial services and technology. The company previously operated a crypto division, but shuttered operations in December 2023.
