Upstart Holdings, Inc. announced a multi‑year forward‑flow agreement with Centerbridge Partners, L.P. The deal commits Centerbridge to purchase up to $1.2 billion of consumer loans originated through Upstart’s platform over a 24‑month period.
The agreement strengthens Upstart’s capital‑light strategy by providing a reliable source of funding that reduces the company’s balance‑sheet exposure while enabling it to scale its personal, auto and home‑lending businesses. The partnership allows Upstart to focus on loan origination and technology rather than on raising capital through debt or equity.
"We’re excited to collaborate with the Upstart team to identify and fund U.S. consumers through a standout, technology‑first lending platform," said Aaron Fink, Senior Managing Director and Head of Asset‑Based Finance at Centerbridge. The quote underscores Centerbridge’s confidence in Upstart’s AI‑powered marketplace and its ability to deliver high‑quality consumer credit assets.
Upstart’s platform connects consumers with more than 100 banks and credit unions and processes over 90 % of loans without human intervention. The forward‑flow agreement follows a similar $1 billion commitment announced in 2024, reinforcing the company’s track record of securing institutional financing to support growth.
By securing $1.2 billion of future loan purchases, Upstart can increase loan volume and fee revenue across all product lines while maintaining a low balance‑sheet profile. "This partnership broadens our funding capabilities and enables Upstart to sustainably and resiliently deliver smarter, faster credit solutions across the lending ecosystem," said Sanjay Datta, President of Capital & Enterprise at Upstart.
Forward‑flow agreements such as this are a key tool for fintech lenders to manage liquidity and scale operations in a volatile market. The deal positions Upstart to capture additional market share in the consumer‑loan space while preserving the efficiency gains achieved through its automated underwriting engine.
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