- SoFi Technologies (SOFI, Financial) secures $3.2 billion in new loan platform agreements.
- Total commitment from Fortress Investment Group now exceeds $5 billion.
- Expansion supports SoFi's shift towards a fee-based revenue model.
SoFi Technologies Inc. (SOFI), a prominent player in digital financial services, has announced a significant expansion of its Loan Platform Business with new agreements totaling $3.2 billion. This includes a $2 billion extension of its personal loans partnership with Fortress Investment Group, enhancing their original $2 billion deal established in October 2024.
In addition to this extension, SoFi has entered into a two-year agreement to originate $1.2 billion in loans through a joint venture involving Fortress and Edge Focus. This strategic move increases Fortress's total commitment to SoFi's Loan Platform Business to over $5 billion.
The expansion reflects SoFi's ongoing strategy to transition towards less capital-intensive, fee-based revenue streams, while still satisfying the growing demand for personal loans. The Loan Platform Business model functions by pre-qualifying borrowers, connecting them with loan origination partners, and originating loans for third parties.
"Our continued collaboration with Fortress is a testament to the success, strength, and scalability of our Loan Platform Business," said Anthony Noto, CEO of SoFi. "This additional $3.2 billion commitment helps us better meet borrower demand and accelerates our shift towards fee-based revenue sources."
Fortress Investment Group, a global investment manager with $50 billion in assets under management, expressed confidence in SoFi's consumer loan offerings. "We are excited to expand this mutually beneficial partnership," commented Dominick Ruggiero, Global Co-Head of Asset Based Credit at Fortress. This expansion is expected to enhance the availability of personal loans while providing an attractive investment opportunity for Fortress's funds.
