Octane Secures Landmark $750 Million Forward-Flow Agreement with AB CarVal

Octane Lending, known for revolutionizing the fintech landscape, has recently signed a monumental forward-flow agreement valued at $750 million with AB CarVal. This transaction stands out not only for its size but also as a continuation of a fruitful partnership that highlights Octane's rapid growth in the consumer lending sector.

A New Milestone in Fintech Agreements

The agreement facilitates AB CarVal’s initial purchase of up to $750 million worth of fixed-rate installment loans that are tied to powersports and outdoor power equipment. These loans are originated by Octane's own lender, Roadrunner Financial, Inc. The partnership carries an option to increase the agreement to $1.125 billion upon mutual consent, marking it as the largest forward-flow arrangement that Octane has established so far.

For the first year, this agreement allows for substantial advances in Octane’s loan origination capabilities, with the potential for further extension of an additional six months and an incremental $375 million purchase of receivables, demonstrating flexibility and adaptability in financial arrangements. Roadrunner Account Services, LLC—the in-house loan servicer for Octane—will handle the servicing of these loans, ensuring a streamlined process for borrowers.

Building on Past Successes

This agreement represents a significant evolution in Octane’s relationship with AB CarVal, which has been growing ever since the initial forward-flow facility valued at $500 million was announced. After extending this previous agreement by $250 million, and executing a $200 million whole loan sale, Octane has firmly established itself as a reliable partner in the financial markets. To date, they have successfully closed six forward-flow agreements and executed seven spot whole loan sales, culminating in nearly $4.9 billion in secured consumer loans sold or committed for sale under their innovative lending programs.

Nicholas Makarov, the Senior Vice President and Head of Capital Markets at Octane, expressed excitement regarding this new phase. He noted, “We are thrilled to expand our relationship with AB CarVal. The continued growth of our partnership reflects the strength and consistency of Octane's portfolio performance, the demand from elite investors for our loans, and our commitment to deepening relationships with capital partners.”

P.J. Collins, Managing Director at AB CarVal, echoed Makarov's sentiment, highlighting Octane's growth and adaptability in an ever-changing lending landscape. “Octane continues to be a fast-growing, differentiated player in consumer lending, and we are pleased to expand our ongoing relationship,” he stated.

A Future of Innovation and Growth

The announcement of this forward-flow agreement comes on the heels of a productive period for Octane, where the company surpassed a staggering $9 billion in total originations. They have earned accolades for their performance in capital markets, notably being recognized as ABS Issuer of the Year in 2026 and winning ABS Deal of the Year in 2025 at the prestigious Global Capital US Securitization Awards. Since the inception of their ABS program in December 2019, Octane has successfully issued over $4.7 billion in asset-backed securities.

With this historic agreement, Octane aims to leverage the proceeds to fuel ongoing platform growth and innovation, ensuring that they remain at the cutting-edge of the fintech sector.

Founded in 2014, Octane has since partnered with 80 original equipment manufacturer (OEM) brands and over 4,000 dealers, employing over 600 professionals who are dedicated to transforming the consumer lending experience. Their approach integrates advanced technology and unique risk strategies to enhance the purchasing journey for consumers across various financing needs.

As Octane continues to tap into this thriving partnership with AB CarVal and expand its expansive network, the future looks relentlessly promising for both firms.

For more information, visit Octane.co.