SoFi Technologies, Inc. (NASDAQ: SOFI), a “one-stop shop” for digital financial services that helps members borrow, save, spend, invest and protect their money, announced a $2 billion loan platform business agreement for personal loans with funds managed by affiliates of Fortress Investment Group LLC.
The agreement will expand SoFi’s capabilities in its loan platform business, where the company refers pre-qualified borrowers to loan origination partners as well as originates loans on behalf of third parties.
Anthony Noto, CEO of SoFi said that the firm’s loan platform business is an important part of their overall business strategy to serve the financial needs of members and “diversify toward less capital-intensive and more fee-based sources of revenue.” Anthony added that they’re pleased to see continued demand for SoFi’s loan platform business.
They also noted that Fortress’ collab, execution, and appreciation of the platform’s value proposition makes them a good partner.
Dominick Ruggiero, Co-Head of Specialty Finance at Fortress stated that SoFi’s platform – and its focus on innovation and providing valuable credit solutions to its members – create a “compelling investment opportunity for Fortress’s funds.”
As covered, SoFi’s suite of financial products and services helps its nearly 8.8 million SoFi members borrow, save, spend, invest, and protect their money better by giving them fast “access to the tools they need to get their money right, all in one app.”
As noted in the update, Fortress Investment Group LLC is described as being a diversified global investment manager.
Established back in 1998, Fortress manages $48B of AuM as of June 30, 2024, on behalf of approximately 2,000 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
In a separate update, it was noted that SoFi Technologies, Inc. is expanding its credit card portfolio with the introduction of the SoFi Everyday Cash Rewards Credit Card and the SoFi Essential Credit Card.
These offerings, developed with feedback from SoFi members and others, build on the firm’s commitment to helping people “achieve their ambitions and serving their diverse credit needs.”
The SoFi Everyday Cash Rewards Credit Card is reportedly intended for those who prioritize “earning rewards on their daily spending,” whether it’s dining out, ordering in, or shopping for groceries.
