Castlelake, a private credit lender, has announced its plan to purchase up to $1.2 billion in consumer installment loans from fintech company Upstart.
This move is part of Castlelake's strategy to expand its presence in the retail lending market, especially as traditional banks retreat due to high interest rates and default risks. Unlike banks, private lenders like Castlelake face fewer regulatory constraints and are more willing to finance riskier loans. This deal follows a similar $4 billion loan purchase agreement between the two companies last year.
