Octane Lines Up $1.4 Billion in Forward-Flow Financing for Powersports Loans, Its Largest to Date

SAN FRANCISCO — Octane, the fintech lender focused on powersports financing, has closed a $1.4 billion forward-flow facility to fund fixed-rate installment loans for motorcycles, ATVs, snowmobiles and outdoor power equipment — the largest such facility the company has arranged to date. New York Life Investment Management arranged the deal and is the lead investor, with MetLife Investment Management and Equitable also providing capital; Pacific Life and Victory Park Capital are joining as new forward-flow partners.

A forward-flow facility is a standing commitment from institutional investors to purchase loans as a lender originates them, rather than a one-time securitization of an existing loan pool. For Octane, that structure means capital is lined up in advance to keep funding new loans, rather than the company needing to hold originated loans on its own balance sheet or return to the market deal by deal.

The loans themselves are originated by Roadrunner Financial, Octane's in-house lender, and will be serviced by an affiliated entity, Roadrunner Account Services. The company describes the lending as "full-spectrum," meaning it extends across a range of borrower credit profiles rather than only near-prime or prime borrowers — a segment where loss rates and loan performance typically draw more scrutiny from the institutional investors providing the capital.

The size and composition of the facility — insurers' investment arms alongside a specialty credit manager in Victory Park Capital — points to continued institutional appetite for consumer installment credit in powersports, a category that has historically been financed by captive lenders tied to equipment manufacturers and dealers rather than standalone fintech platforms.