SoFi Technologies will expand its lending platform business through a new agreement with Blue Owl Capital worth up to USD 5 billion.
The agreement is the largest of its kind that SoFi has concluded to date. It is more than double the size of the deal the US fintech company previously closed with Fortress Investment Group in October.
Blue Owl will use its funds under management, which currently amount to over 250 billion US dollars, to finance private loans made through SoFi's lending platform business.
This company acts as an intermediary for consumer loans and matches pre-qualified borrowers with lending partners. SoFi lent 2.1 billion US dollars last year and also lends on behalf of third parties.
The two-year deal with Blue Owl aims to "help more members invest their money properly while diversifying into less capital-intensive and more fee-based revenue streams," according to SoFi CEO Anthony Noto .
Instead of holding loans on its own books, the fintech company earns its money through fees and services rather than interest income.
The lending business is one of SoFi's three core business areas alongside financial services and technology. The company previously operated a crypto division, but ceased operations in December 2023.
