Octane and Yieldstreet, a leading private market investing platform, have announced the completion of an agreement to sell $280 million of fixed-rate installment powersports whole loans issued through Octane’s in-house lender, Roadrunner Financial, to Yieldstreet in two separate transactions. The first sale, which included a newly originated portfolio of $140 million in loans, closed in December 2023. The second sale, which includes committed financing already in place, is expected to close no later than April 2024. Yieldstreet partnered with a world class financial institution on their inaugural private credit facility to help power the transaction.
“Yieldstreet is the preeminent private market platform led by a team of seasoned world-class investment professionals,” says Ravi Chaganty, senior vice president, Capital Markets at Octane. “They were tremendous to partner with on this transaction and we look forward to growing our burgeoning relationship with them in the future.”
“We are thrilled to partner with Octane on this milestone transaction – their first major private whole loan sale,” says Ted Yarbrough, chief investment officer of Yieldstreet. “Opportunities like this further validate our strategy of working closely with high-quality originators to source attractive loan assets that meet our strict investment criteria. We look forward to pursuing similar collaborative investments with Octane in the future and bringing these offerings to investors on Yieldstreet.”
“This transaction further enhances our capital markets strategy by diversifying our committed funding sources in order to support our continued total addressable market expansion in the powersports market and beyond,” says Steve Fernald, chief financial officer at Octane.
Octane’s capital markets strategy includes committed warehouse facilities and more than $3 billion of asset-backed securitizations to date. All of Octane’s 2023 ABS issuances earned AAA-ratings* on the senior class of notes.
*The full analysis for S&P’s ratings for Octane’s Asset Backed Securitizations, including any updates, is available on S&P Global Ratings website. KBRA’s ratings are subject to all of the terms and conditions set forth in the related report and KBRA’s website also includes recent upgrades and affirmations.