Octane Closes $1.4 Billion Forward-Flow Deal with New York Life, MetLife Investment Management, Equitable, Pacific Life, and Victory Park Capital

Pacific Life and Victory Park Capital join existing partners in Octane's loan-purchase program.

Rhea-AI Summary

Octane executed a $1.4 billion forward-flow facility, its largest transaction of this type, with five institutional investment partners. The agreement provides for purchases of up to $1.4 billion backed by fixed-rate installment loans for powersports and outdoor power equipment originated by Roadrunner Financial.

New York Life Investment Management served as Loan Arranger and Lead Investor, alongside MetLife Investment Management, Equitable, Pacific Life and Victory Park Capital. The latter two are new forward-flow partners. Octane has sold or secured commitments to sell more than $6.3 billion of consumer loans, including approximately $3.4 billion in commitments in 2026. First-half 2026 originations grew 37% year-over-year.

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Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Forward-flow agreement provides for purchases of up to $1.4 billion backed by Octane-originated loans. 9.5% of market cap
• Moderate pointFirst-half 2026 originations grew 37% year-over-year.
• Minor pointPacific Life and Victory Park Capital join Octane as new forward-flow partners.
• Minor pointConsumer loans sold or committed for sale exceed $6.3 billion across forward-flow and whole-loan programs.
• Minor pointLoan-sale commitments in 2026 total approximately $3.4 billion.

3 minor points

• Minor pointAll-time loan originations surpassed $9 billion.
• Minor pointOctane's asset-backed securitization program has issued more than $5 billion of notes to date.
• Minor pointOctane entered the auto industry, expanding its financing business.

Negative

• None.

Key Figures

Forward-flow facility: $1.4 billion Prior forward-flow facility: $700 million Cumulative loan sales and commitments: More than $6.3 billion

Forward-flow facility

$1.4 billion

Octane facility backed by loans originated by Roadrunner Financial

Prior forward-flow facility

$700 million

April 2025 facility in which New York Life, MetLife and Equitable participated

Cumulative loan sales and commitments

More than $6.3 billion

Octane forward-flow and whole-loan programs to date

Key Terms

forward-flow facility, asset-backed securitization, whole-loan programs

3 terms

forward-flow facility financial

"executed a $1.4 billion forward-flow facility"

A forward-flow facility is a financing contract in which a purchaser or funder agrees in advance to buy pools of assets or future-originated receivables from an originator on an ongoing basis under pre-set terms. Instead of a one-time sale, the agreement specifies eligibility rules for the assets (for example loan type, credit quality, or documentation), pricing or discount margins, purchase schedules or caps, and conditions that must be met before each tranche is bought. Originators use forward-flow facilities to obtain predictable, repeatable funding as they generate new loans, receivables, or royalty streams; the purchaser gains the right to acquire those future assets but typically assumes the related credit and performance risk only to the extent defined by the contract (including any representations, warranties, and repurchase obligations).

asset-backed securitization financial

"alongside an asset-backed securitization program"

Asset-backed securitization is a process where a financial institution pools together a group of assets—such as loans or receivables—and converts them into a security that can be sold to investors. This allows the original lender to raise funds quickly, while investors gain access to a stream of payments derived from the underlying assets. It’s similar to bundling multiple small income sources into a single investment, providing both liquidity for lenders and investment opportunities for others.

whole-loan programs financial

"through its forward-flow and whole-loan programs"

Programs in which a lender, broker-dealer, or investment firm originates, buys, pools or sells individual loans as whole assets rather than packaging them into securities; they set the legal, operational and financing terms for acquiring, holding, servicing, transferring and disposing of those loans. Whole-loan programs typically specify eligibility criteria, pricing, repurchase or warranty obligations, and funding arrangements (for example warehouse lines or forward sales), and they leave credit risk and repayment cash flows tied to each loan instead of being distributed through a securitization. Unlike mortgage-backed securities or other structured products, whole-loan programs involve direct ownership of the loan paperwork and borrower payments, so investors bear borrower default and prepayment risk on the specific loans they hold.

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Expanded Partnership with Leading Institutional Investors Marks Octane's Largest Forward-Flow Transaction to Date

• Octane executed a $1.4 billion forward-flow facility backed by fixed-rate installment, full-spectrum powersports and outdoor power equipment loans
• Largest forward-flow transaction since Octane's inception and third forward-flow deal announced in 2026
• Builds on Octane's existing relationships with New York Life, MetLife Investment Management, and Equitable and adds Pacific Life and Victory Park Capital as new forward-flow partners

NEW YORK, Oct. 6, 2026 /PRNewswire/ -- Octane^® (Octane Lending, Inc.), the fintech unlocking the power of financial products for retailers and consumers, announced today that it has executed a $1.4 billion forward-flow facility, marking the Company's largest forward-flow transaction to date and further deepening its relationships with leading institutional investors.

New York Life Investment Management, the asset management business of New York Life, was the Loan Arranger and Lead Investor along with MetLife Investment Management, the institutional asset management business of MetLife, Inc. (NYSE: MET), Equitable, a leading financial services organization and principal franchise of Equitable Holdings, Inc. (NYSE: EQH), Pacific Life, and Victory Park Capital, a leading global alternative investment firm specializing in private credit. AB CarVal, an established global alternative investment manager and part of AllianceBernstein's Private Alternatives business, served as Investment Advisor to Equitable in connection with the transaction. Under the terms of the agreement, the parties have jointly agreed to purchase up to $1.4 billion backed by fixed-rate installment, full-spectrum powersports and outdoor power equipment loans originated by Octane's in-house lender, Roadrunner Financial, LLC. Octane's in-house loan servicer, Roadrunner Account Services, LLC, will service the loans.

This transaction marks Octane's third forward-flow partnership with funds managed by life insurance providers and builds on its existing relationships with New York Life, MetLife, and Equitable, each of which participated in the Company's $700 million forward-flow facility announced in April 2025.

"Our largest-ever forward-flow facility marks a significant milestone for Octane and our capital markets program," said Nicholas Makarov, SVP and Head of Capital Markets at Octane. "We're grateful to each of our partners for their continued confidence in our platform. The scale of this transaction and the quality of partners participating reflect the strength and consistency of our credit performance, the continued demand from leading institutional investors for Octane-originated assets, and our ability to build and deepen relationships with best-in-class capital partners."

"Building on our inaugural facility, we are proud to close a second forward-flow commitment with Octane alongside an expanded group of institutional partners," said Brendan Feeney, Managing Director and Head of Consumer Asset Based Finance, Private Fixed Income. Private Fixed Income is part of New York Life Investment Management (NYLIM), a global investment platform with approximately $837 billion assets under management, delivering tailored solutions across public and private markets. "This transaction reinforces NYLIM's commitment to sourcing high-quality, differentiated assets for our portfolio while supporting Octane's continued growth and market leadership."

With this transaction, Octane continues to expand its base of high-quality institutional capital partners. To date, the Company has sold or secured commitments to sell more than $6.3 billion of consumer loans through its forward-flow and whole-loan programs, including approximately $3.4 billion in commitments in 2026. The transaction further strengthens Octane's diversified capital markets platform, alongside an asset-backed securitization program that has issued more than $5 billion of notes to date, including its $337 million RV and Marine securitization, the Company's largest in the asset class to date.

The forward-flow announcement follows a period of continued growth and momentum for Octane. In the first half of 2026, Octane grew originations by 37% year-over-year and surpassed $9 billion in all-time originations. Octane also announced significant Captive-as-a-Service™ partnerships in the powersports and RV markets, entered the auto industry, continued to expand across the powersports, outdoor power equipment, RV, and Marine industries, and was named ABS Issuer of the Year at the 2026 GlobalCapital US Securitization Awards.

About Octane:
Octane^® is revolutionizing financing by delivering a seamless, end-to-end digital buying experience. Octane unlocks the power of financial products for retailers and consumers by combining cutting-edge technology and innovative risk strategies, helping businesses finance more creditworthy customers to make automotive and lifestyle purchases — including Powersports Vehicles, RVs, Boats, and Outdoor Power Equipment — fast, easy, and accessible.

Octane adds value throughout the buying journey: connecting dealers and buyers with customer acquisition tools, instantly prequalifying consumers for financing online, providing technology to make the closing process faster and easier, and supporting customers throughout their loan with superior loan servicing.

Founded in 2014, Octane has 80 OEM brand partners, more than 4,000 dealer partners, and a team of over 600. Visit Octane.co.

Octane^® and Roadrunner Financial^® are registered service marks of Octane Lending, Inc.

Octane Media Relations:
Press@octane.co

Octane Investor Relations:
IR@octane.co

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SOURCE Octane

FAQ

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How large is Octane's new forward-flow agreement and who are the investors?

The agreement provides for purchases of up to $1.4 billion backed by loans originated by Octane's in-house lender. Participants are New York Life Investment Management, MetLife Investment Management, Equitable, Pacific Life and Victory Park Capital. New York Life Investment Management served as Loan Arranger and Lead Investor.

Who will service the loans in Octane's new forward-flow facility?

Roadrunner Account Services, Octane's in-house loan servicer, will service the loans in the facility.

What role did AB CarVal play in Octane's forward-flow transaction?

AB CarVal served as Investment Advisor to Equitable in connection with the transaction.