Octane announced that it has executed an up to $700 million forward-flow facility. New York Life, one of the largest mutual life insurance companie 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. 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, 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 said it 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 strategicobjectives 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.
