Upstart Announces Inaugural $200M Upstart Auto Forward-Flow Agreement with Wafra
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forward-flowfinancial
A forward-flow is a standing agreement under which one party regularly sells or transfers future assets or revenue streams to another party over a set period, rather than as a one-time sale. Investors care because it creates a predictable, ongoing source or outflow of cash—like a subscription or recurring delivery—so it affects a company’s short-term liquidity, long-term revenue visibility and risk profile.
auto finance platformfinancial
An auto finance platform is a digital marketplace or service that connects car buyers, dealers and lenders to arrange vehicle loans, leases and related payments; think of it as the online cashier and credit desk for buying a car. Investors care because these platforms drive loan volume, fee income and credit risk exposure — changes in approval rates, defaults, interest margins or customer growth can quickly affect revenue and the value of companies tied to auto lending.
asset-based financefinancial
Asset-based finance is a type of lending where a company borrows money using tangible assets—such as accounts receivable (invoices), inventory, or equipment—as security, similar to using a valuable item as collateral at a pawn shop. Investors care because it affects a firm's access to cash and its risk profile: more asset-backed borrowing can provide quick funding but also ties borrowing limits to the value and liquidity of those assets.
lending marketplacefinancial
A lending marketplace is a platform that matches people or institutions who need loans with those willing to lend money, handling pricing, credit checks and the paperwork much like a market connects buyers and sellers. Investors pay attention because it determines how easily loans are made and traded, the likely return and the level of credit and liquidity risk—similar to choosing which stall at a market offers the best balance of price and trust.
SAN MATEO, Calif.--(BUSINESS WIRE)--
Upstart Holdings, Inc. (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, today announced a forward-flow commitment from funds managed by Wafra, a New York-based global alternative investment manager focused on strategic partnerships, real estate and real assets. Wafra has agreed to purchase up to $200 million of assets originated through the Upstart auto finance platform.
“We are pleased to partner with Upstart on its inaugural auto finance forward-flow program,” said Paul Steinberger, Managing Director at Wafra. “This partnership exemplifies how we work with leaders in the asset-based finance ecosystem on strategies to deliver credit exposures that offer compelling risk-reward opportunities for our investors.”
The agreement consists of a 12-month forward flow arrangement and is the first such agreement between Upstart and Wafra. The arrangement supports Upstart’s ability to deliver a consistent auto funding platform across its growing auto product vertical business and over a variety of economic environments.
“We are delighted over the opportunity to establish a strong partnership with Wafra in this agreement, which demonstrates significant market interest in Upstart's maturing auto platform,” said Sanjay Datta, President and Chief Capital Officer at Upstart. “Wafra's investment will help Upstart to continue our goal of pursuing the best rates and best process to help borrowers with their auto financing needs.”
About Upstart
Upstart (NASDAQ: UPST) is the leading AI lending marketplace, connecting millions of consumers to more than 100 banks and credit unions that leverage Upstart’s AI models and cloud applications to deliver superior credit products. With Upstart AI, lenders can approve more borrowers at lower rates while delivering the exceptional digital-first experience customers demand. More than 90% of loans are fully automated, with no human intervention by Upstart. Founded in 2012, Upstart’s platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar “relief” loans. Upstart is based in San Mateo, California.
About Wafra
Wafra is a global alternative investment manager with approximately $29 billion of assets under management across a range of alternative investment strategies including strategic partnerships, real assets & infrastructure, and real estate. For over 40 years, Wafra has provided flexible and accretive capital solutions across asset classes while building enduring partnerships with high-quality asset owners, companies, and management teams. Wafra is headquartered in New York with additional offices in London and Bermuda.
