AI lending platform, Upstart, has entered into a purchase agreement with global alternative investment manager, Castlelake. The partnership aims to expand Upstart’s business and provide affordable credit options to respond to the increasing demand in today’s economic environment.
Upstart Partners with Castlelake
Upstart’s platform connects millions of consumers to 99 banks and credit unions, leveraging AI to approve more borrowers at lower loss rates. Since its inception in 2012, over $32 billion in loans have been originated on the platform. With Castlelake’s experience in underwriting consumer credit and small business loans, the partnership aims to upsize Upstart’s business to cater to the growing demand for affordable credit.
Expanding Access to Affordable Credit
John Lundquist, Partner of Specialty Finance at Castlelake, said that the company is committed to supporting Upstart’s mission of unlocking mobility and opportunity for millions of U.S. consumers during these uncertain economic times. Upstart CFO, Sanjay Datta, added that Castlelake’s support will ensure resources to scale the deployment of their AI models, further expanding access to affordable credit for consumers.
Castlelake’s Involvement in Fintech
The transaction is the latest example of Castlelake’s participation in the consumer credit and specialty finance sector. The company has acquired assets and provided asset-based private credit, with recent transactions including a £100 million facility commitment for a fintech company focusing on revenue-based financing solutions, and an agreement to provide credit to a tech-enabled trade financing platform designed for small and medium-sized businesses.
In conclusion, the partnership between Upstart and Castlelake aims to address the growing demand for affordable credit options in a challenging economic landscape. With Castlelake’s experience and resources, Upstart will continue to scale its AI-driven platform, providing consumers with easier access to credit while fostering economic mobility.