Octane Secures $700 Million Partnership with Major Insurers to Accelerate Growth
Octane Lending, Inc., popularly known as Octane®, has recently made headlines with its groundbreaking deal that sets a new milestone for the company. The fintech firm, which is redefining the experience of buying recreational products, has finalized a significant forward-flow facility amounting to $700 million. This strategic partnership with prominent players in the financial services industry, namely New York Life, MetLife Investment Management, and Equitable, signals a robust support framework for Octane's continued expansion in the recreational financing market.
At the helm of this transformative initiative, New York Life, the largest mutual life insurance company in the United States, took the lead as the chief investor and loan arranger. MetLife Investment Management and Equitable also joined as major stakeholders in this significant funding opportunity, providing essential capital to drive Octane’s ambitious growth plans. With Truist Securities acting as the structuring agent and advisory support provided by AB CarVal, a reputable global investment manager, this deal embodies a concerted effort between established financial institutions and innovative fintech.
Under the specifics of the agreement, New York Life will extend funding of up to $350 million, while MetLife's commitment will reach $200 million. Equitable has pledged an additional $150 million geared towards financing fixed-rate installment loans aimed at powersports, facilitated by Octane’s in-house lender, Roadrunner Financial®, Inc. The ongoing servicing of the loans will be managed by Roadrunner Account Services, LLC, ensuring a streamlined process for customers.
The implications of this partnership extend well beyond mere numbers; with this funding, Octane is well-positioned to enhance its service offerings and significantly scale its operations. In the year prior, in 2024, Octane reported an impressive growth in originations by 36% year-over-year. This infusion of capital will aid in maintaining and accelerating such growth, allowing Octane to attract even more high-quality capital providers and diversify its financial resources.
Steve Fernald, Octane's President and CFO, expressed enthusiasm about the partnership, noting, "We’re excited to leverage our strong, consistent, and stable credit performance by offering alternative asset classes to attract three distinguished insurance partners." He emphasized the importance of building robust relationships with New York Life, MetLife, and Equitable to innovate and provide exceptional solutions to both OEMs and dealers.
Brendan Feeney, Managing Director at New York Life, reflected on the value of the partnership, stating, "We are delighted to partner with Octane in this landmark forward-flow facility, which provides a valuable investment opportunity for New York Life and will help support Octane’s success and expansion." He highlighted that investments like this reinforce their commitment to policyholders by ensuring the growth and stability of their portfolio.
Moreover, Glen Gardner from Equitable added his perspective on the transaction, stating, "We are committed to investing in innovative financial solutions that align with the strategic objectives of our General Account, and this transaction further supports the development of AllianceBernstein’s Private Alternative capabilities."
Octane has been on a journey of expansion, having successfully sold or committed over $2 billion in forward flow since its inception into whole-loan sales in late 2023. The company maintains a proactive business strategy intrigued by digital transformations, allowing it to cater to a growing customer base by enhancing their ability to finance lifestyle purchases like vehicles, personal watercraft, and outdoor equipment efficiently.
Founded in 2014, Octane has created a significant impact on recreational financing through technological innovation and a commitment to quality customer service. With approximately 60 OEM partners and a network of over 4,000 dealers, Octane is striving to continue leading in the fintech space, ensuring that customer experience remains seamless and exceptional.
For more information about Octane and its innovative financing solutions, you can visit their official website at www.octane.co.
At the helm of this transformative initiative, New York Life, the largest mutual life insurance company in the United States, took the lead as the chief investor and loan arranger. MetLife Investment Management and Equitable also joined as major stakeholders in this significant funding opportunity, providing essential capital to drive Octane’s ambitious growth plans. With Truist Securities acting as the structuring agent and advisory support provided by AB CarVal, a reputable global investment manager, this deal embodies a concerted effort between established financial institutions and innovative fintech.
Under the specifics of the agreement, New York Life will extend funding of up to $350 million, while MetLife's commitment will reach $200 million. Equitable has pledged an additional $150 million geared towards financing fixed-rate installment loans aimed at powersports, facilitated by Octane’s in-house lender, Roadrunner Financial®, Inc. The ongoing servicing of the loans will be managed by Roadrunner Account Services, LLC, ensuring a streamlined process for customers.
The implications of this partnership extend well beyond mere numbers; with this funding, Octane is well-positioned to enhance its service offerings and significantly scale its operations. In the year prior, in 2024, Octane reported an impressive growth in originations by 36% year-over-year. This infusion of capital will aid in maintaining and accelerating such growth, allowing Octane to attract even more high-quality capital providers and diversify its financial resources.
Steve Fernald, Octane's President and CFO, expressed enthusiasm about the partnership, noting, "We’re excited to leverage our strong, consistent, and stable credit performance by offering alternative asset classes to attract three distinguished insurance partners." He emphasized the importance of building robust relationships with New York Life, MetLife, and Equitable to innovate and provide exceptional solutions to both OEMs and dealers.
Brendan Feeney, Managing Director at New York Life, reflected on the value of the partnership, stating, "We are delighted to partner with Octane in this landmark forward-flow facility, which provides a valuable investment opportunity for New York Life and will help support Octane’s success and expansion." He highlighted that investments like this reinforce their commitment to policyholders by ensuring the growth and stability of their portfolio.
Moreover, Glen Gardner from Equitable added his perspective on the transaction, stating, "We are committed to investing in innovative financial solutions that align with the strategic objectives of our General Account, and this transaction further supports the development of AllianceBernstein’s Private Alternative capabilities."
Octane has been on a journey of expansion, having successfully sold or committed over $2 billion in forward flow since its inception into whole-loan sales in late 2023. The company maintains a proactive business strategy intrigued by digital transformations, allowing it to cater to a growing customer base by enhancing their ability to finance lifestyle purchases like vehicles, personal watercraft, and outdoor equipment efficiently.
Founded in 2014, Octane has created a significant impact on recreational financing through technological innovation and a commitment to quality customer service. With approximately 60 OEM partners and a network of over 4,000 dealers, Octane is striving to continue leading in the fintech space, ensuring that customer experience remains seamless and exceptional.
For more information about Octane and its innovative financing solutions, you can visit their official website at www.octane.co.
Topics Financial Services & Investing）
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