Octane Closes $700 Million Forward-Flow Deal with New York Life, MetLife Investment Management, and Equitable

Rhea-AI Summary

Octane, a fintech company specializing in recreational purchases financing, has secured its largest forward-flow facility to date, valued at $700 million. The deal involves three major insurance partners: New York Life ($350 million), MetLife Investment Management ($200 million), and Equitable (NYSE: EQH) ($150 million).

The agreement will fund fixed-rate installment powersports loans originated by Octane's in-house lender, Roadrunner Financial. This partnership follows Octane's strong performance in 2024, with a 36% year-over-year growth in originations. The company has sold or committed to forward flow agreements exceeding $2 billion since late 2023, including a previous $500 million facility with AB CarVal in 2024.

Positive

• Secured largest-ever $700M forward-flow facility with major insurance partners
• Strong 36% YoY growth in originations for 2024
• Achieved over $2B in forward flow commitments since late 2023
• Diversification of funding sources with high-quality capital providers

Negative

• None.

Partnership with Leading Insurers Helps Turbocharge Company's Continued Growth

NEW YORK, April 15, 2025 /PRNewswire/ -- Octane^® (Octane Lending, Inc.^®), the fintech revolutionizing the buying experience for major recreational purchases, announced today that it has executed an up to $700 million forward-flow facility. New York Life, the largest¹ mutual life insurance company in the United States, was the Loan Arranger and lead investor along with MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc., and Equitable, a leading financial services organization and principal franchise of Equitable Holdings, Inc. (NYSE: EQH). Truist Securities served as Structuring Agent on behalf of the insurance syndicate. AB CarVal, an established global alternative investment manager and part of AllianceBernstein's Private Alternatives business, served as an investment advisor on this transaction for Equitable. This transaction marks Octane's largest forward-flow agreement to date, and its second such partnership with funds managed by life insurance providers.

Under the terms of the deal, New York Life has agreed to fund up to $350 million, MIM has agreed to fund up to $200 million, and Equitable has agreed to fund up to $150 million of fixed-rate installment powersports loans originated by Octane's in-house lender, Roadrunner Financial^®, Inc. Octane's in-house loan servicer, Roadrunner Account Services, LLC, will continue to service the loans.

The proceeds of this deal will support Octane's continued momentum; the company grew originations in 2024 by 36% year over year. Through this transaction, the Company continues to diversify and grow its existing base of high quality capital providers.

"We're excited to leverage our strong, consistent, and stable credit performance by offering alternative asset classes to attract three distinguished insurance partners," said Steve Fernald, President and CFO of Octane. "We look forward to strengthening our relationships with New York Life, MIM, and Equitable and continuing to serve our OEM and dealer partners with our innovative solutions and fast, seamless digital experience."

"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," said Brendan Feeney, Managing Director and Head of Consumer Asset Based Finance with New York Life. "This deal reinforces our commitment to our policy owners by investing in high-quality assets for the stability and growth of our portfolio. We look forward to deepening our relationship with Octane and our partners in this investment, MIM and Equitable."

"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, including AB CarVal," said Glen Gardner, Chief Investment Officer of Equitable.

Octane has sold or entered into forward flow commitments of over $2 billion since its first whole-loan sale in late 2023, including a $500 million forward-flow facility with funds managed by AB CarVal in 2024. 

¹ Based on revenue as reported by "Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual)," Fortune magazine, 6/4/2024. For methodology, please see https://fortune.com/franchise-list-page/fortune-500-methodology-2023/. 

About Octane:
Octane^® is revolutionizing recreational purchases by delivering a seamless, end-to-end digital buying experience. We connect people with their passions by combining cutting-edge technology and innovative risk strategies to make lifestyle purchases–like powersports vehicles, RVs, boats, personal watercraft, and outdoor power equipment–fast, easy, and accessible.

Octane adds value throughout the customer journey: inspiring enthusiasts with the Octane Media™ editorial brands, including Cycle World^® and UTV Driver^®, instantly prequalifying consumers for financing online, routing customers to dealerships for an easy closing, and supporting customers throughout their loan with superior loan servicing.

Founded in 2014, we support approximately 60 OEM partner brands and over 4,000 dealer partners, and have a team of over 550 in remote and hybrid roles. Visit www.octane.co.

Octane^® and Roadrunner Financial^® are registered service marks of Octane Lending, Inc. Cycle World^® and UTV Driver^® are registered trademarks of Octane Media, LLC.

Media Relations: Shannon O'Hara
Press@octane.co                                                                  

Investor Relations:
IR@octane.co 

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SOURCE Octane

FAQ

What is the size and structure of Octane's new forward-flow facility with insurance partners?

Octane secured a $700M facility with New York Life ($350M), MetLife Investment Management ($200M), and Equitable ($150M) for powersports loans.

How much did Octane's loan originations grow in 2024?

Octane reported a 36% year-over-year growth in loan originations for 2024.

What is the total value of Octane's forward flow commitments since late 2023?

Octane has sold or committed to over $2 billion in forward flow agreements since late 2023.

How will EQH (Equitable) participate in Octane's forward-flow facility?

Equitable (EQH) will fund up to $150 million of the $700 million facility, with AB CarVal serving as their investment advisor.