Upstart Holdings (NASDAQ: UPST) has entered into a multi-year forward-flow agreement with Castlelake, L.P. under which Castlelake-managed funds will purchase up to $4 billion of consumer loans originated on the Upstart platform over a period of up to 24 months.

According to a press release, the agreement is the largest program between the two companies to date, building on prior transactions that began in 2023. Upstart described it as one of its largest institutional funding commitments.

Sanjay Datta, President of Capital & Enterprise at Upstart, said: "Our relationship with Castlelake has grown alongside the evolution of our marketplace, and this expanded commitment reflects the value of that long-term collaboration."

John Lundquist, Partner of Specialty Finance at Castlelake, said: "This new commitment reflects our continued belief in the durability of Upstart consumer installment loans as attractive risk-adjusted exposure for our investors."

Castlelake, founded in 2005, is a global alternative investment manager specializing in asset-based private credit. The firm manages approximately $38 billion in assets and has invested approximately $29 billion in consumer and small and medium-sized business loan originator opportunities since 2015.