Octane Lending, a fintech company that finances recreational purchases such as all-terrain vehicles, secured a $700 mn forward-flow facility from a group of life insurers.
New York Life Insurance, acting as the loan arranger, committed up to $350 mn. MetLife Investment Management agreed to provide up to $200 mn, while Equitable, a franchise of Equitable Holdings, will supply $150 mn.
Octane announced that this transaction represents its largest forward-flow arrangement to date and the second involving life insurers.
Brendan Feeney, managing director and head of consumer asset-based finance at New York Life, stated that the investment supports the company’s portfolio growth and stability by adding high-quality assets. He also expressed interest in expanding cooperation with Octane, MetLife Investment Management (MIM), and Equitable.
Octane’s technology and innovative risk program bring speed, ease, and broad credit coverage to the purchasing process in underserved markets, like powersports vehicles, outdoor power equipment, and RVs.
This deal reinforces our commitment to our policy owners by investing in high-quality assets for the stability and growth of our portfolio
Brendan Feeney, managing director and head of consumer asset-based finance with New York Life
“We look forward to deepening our relationship with Octane and our partners in this investment, MIM and Equitable,” Brendan Feeney said.
Founded in 2014, Octane has originated over $6 bn in loans, according to its website. The company operates Roadrunner Financial as its in-house lender and finances products such as motorcycles, ATVs, mowers, tractors, trailers, recreational vehicles, go-karts, and electric vehicles.
Truist Securities acted as Structuring Agent for the insurance syndicate involved in the deal. AB CarVal, a global alternative investment manager within AllianceBernstein’s Private Alternatives division, served as investment adviser for Equitable.
Earlier this month, Equitable Holdings Inc. disclosed that it spent $761 mn to increase its stake in AllianceBernstein L.P. through a tender offer.
Equitable expects to acquire 19,766,878 units, or 17.9% of the outstanding units as of December 31, 2024. Upon completion, Equitable’s ownership in AllianceBernstein, the operating partnership of AB Holding, will reach approximately 68.6%.
