Octane Closes $200 Million Whole Loan Sale with AB CarVal

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Oct 31, 2024, 11:13 ET

New Transaction Fuels Octane's Continued Momentum and Growth

NEW YORK, Oct. 31, 2024 /PRNewswire/ -- Octane^® (Octane Lending, Inc.^®), the fintech revolutionizing the buying experience for major recreational purchases, announced today that it has sold a portfolio of $200 million of fixed-rate installment powersports loans to funds managed by AB CarVal, an established global alternative investment manager. The portfolio of whole loans was newly originated by Octane's in-house lender, Roadrunner Financial^®, Inc., and will be serviced by Octane's in-house loan servicer, Roadrunner Account Services, LLC.

This is the second transaction between Octane and AB CarVal. Last month, the companies announced the close of a $500 million forward-flow deal.

Octane will leverage the proceeds from this sale to capitalize on the significant momentum it has been seeing in its business. In September, the company surpassed $5 billion in aggregate originations, and it announced its entrance into the marine market in October.

"We're excited to strengthen our relationship with AB CarVal, one of the world's preeminent global asset managers, through this second transaction," said Steve Fernald, President and CFO of Octane. "By continuing to successfully execute on our capital markets strategy, we are better able to support our customers as well as our OEM and dealer partners through our fast, user-friendly, full-spectrum financing experience."

"We continue to be excited about Octane's differentiated underwriting capabilities and believe that specialized consumer whole loan portfolios offer compelling opportunities for those with deep expertise and experience in asset-based finance," said P.J. Collins, director with 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, boats and personal watercraft, 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 $151 billion in 5,800 transactions across 82 countries. Today, AB CarVal has approximately $19 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 of 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 Octane