Octane Announces $500 Million Forward-Flow Deal with AB CarVal

New Partnership Gives Octane Additional Capacity to Fuel its Growth in the Powersports Market

NEW YORK, Sept. 17, 2024 /PRNewswire/ -- Octane^® (Octane Lending, Inc.^®), the fintech revolutionizing the buying experience for major recreational purchases, announced today that it has executed a $500 million forward-flow facility with funds managed by AB CarVal, an established global alternative investment manager.

Under the terms of the agreement, AB CarVal has agreed to purchase fixed-rate installment powersports loans originated by Octane's in-house lender, Roadrunner Financial^®, Inc., and for Octane's in-house loan servicer, Roadrunner Account Services, LLC, to service the loans.

Octane will leverage this funding to capitalize on the significant momentum it has been seeing in its business. This transaction continues to diversify Octane's large existing base of capital providers and is a testament to the company's strong credit performance.

"We're thrilled to partner with AB CarVal to connect even more powersports enthusiasts with their passion through our state-of-the-art, tech-forward, full-spectrum financing experience," said Steve Fernald, President and CFO of Octane. "By collaborating with one of the world's preeminent global asset managers, we can deepen the ways in which we faithfully serve our OEM and dealer partners and we look forward to growing our relationship with AB CarVal in the future."

"As Octane looks to diversify its funding sources and grow its market share, AB CarVal is pleased to be a partner of choice to such a fast-growing, differentiated player," said P.J. Collins, managing director, AB CarVal.

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, 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 have more than 30 OEM and 4,000 dealer partners, and a team of over 500 in remote and hybrid roles. Visit www.octane.co.

Octane® and Roadrunner Financial® are registered service marks of Octane Lending, Inc.

About AB CarVal:
AB CarVal is an established global alternative investment manager and part of AllianceBernstein's Private Alternatives business. Since 1987, AB CarVal's team has navigated through ever-changing credit market cycles, opportunistically investing $149 billion in 5,765 transactions across 82 countries. Today, AB CarVal has approximately $16 billion* in assets under management in corporate securities, loan portfolios, structured credit and hard assets. Additional information about AB CarVal may be found at www.abcarval.com.

*AUM is comprised fee-earning AUM and fee-eligible AUM. Fee-earning AUM includes those assets currently qualified to generate management fees. Fee-eligible AUM includes capital that is committed to an AB CarVal Fund but is currently uncalled or recallable. The number represented here excludes assets under AB CarVal's management that are not generating management fees due to the maturity of the Fund but includes amounts that do not generate management fees solely due to AB CarVal's decision not to charge management fees.

Media Relations: Shannon O'Hara
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SOURCE AB CarVal