Upstart Sells $2 Billion of Consumer Installment Loans to Blue Owl

Deal Overview - Upstart Holdings has sold up to $2 billion of consumer installment loans to Blue Owl Capital, including$290 million of personal loans already disbursed and future loans under a forward-flow agreement over the next 18 months [1] - The deal represents one of Upstart's largest purchase commitments ever, according to Upstart CFO Sanjay Datta [2] Upstart's Business Performance - Upstart achieved record highs in contribution margin (67% in Q2) and positive cash flow during its August earnings call [3] - 88% of Upstart's unsecured loans are fully automated, enabling faster scaling of originations and a more efficient loan application process [3] Blue Owl's Strategic Moves - Blue Owl recently completed its acquisition of Atalaya Capital Management, which manages over $10 billion in assets as of June 30 [4] - The Atalaya acquisition expands Blue Owl's alternative credit presence and strengthens its position in direct lending [5] Industry Trends - Upstart has been pivoting to private credit, evidenced by its recent deals with Castlelake LP, Eltura Capital Management, Centerbridge Partners, and Ares Management [3] - Blue Owl is expanding into additional credit products, aligning with its acquisition of Atalaya and the Upstart deal [2][4]