Octane closes $750 million forward-flow agreement with AB CarVal

Octane has entered into a $750 million forward-flow agreement with funds managed by AB CarVal, with an option to increase the agreement to $1.125 billion by mutual agreement.

Under the one-year agreement, AB CarVal will initially purchase up to $750 million in fixed-rate installment loans for powersports and outdoor power equipment originated by Octane’s in-house lender, Roadrunner Financial Inc. The agreement also includes an option to extend the facility for six months, allowing up to an additional $375 million in receivable purchases by mutual agreement. Roadrunner Account Services LLC will service the loans.

The agreement is Octane’s largest forward-flow transaction to date and expands an existing relationship between the companies. In 2024, the companies completed a $500 million forward-flow facility that was later increased by $250 million, along with a $200 million whole loan sale. Octane said it has completed six forward-flow agreements and seven spot whole loan sales totaling more than $4.9 billion in secured consumer loans sold or committed for sale through those programs. The company said it plans to use proceeds from the transaction to support platform growth.

“We are thrilled to expand our relationship with AB CarVal,” said Nicholas Makarov, SVP and Head of Capital Markets at Octane. “The continued growth of our partnership reflects the strength and consistency of Octane’s portfolio performance, the continued demand from leading, blue-chip investors for Octane-originated loans, and our ability to deepen relationships with best-in-class capital partners over time. We are grateful for AB CarVal’s continued confidence in our platform and look forward to continuing to build on our partnership as we support the next phase of Octane’s growth.”

“Octane continues to be a fast-growing, differentiated player in the consumer lending space and we are pleased to expand our ongoing relationship,” said P.J. Collins, Managing Director with AB CarVal. “We believe that forward flow agreements with strong counterparties like Octane continue to be compelling opportunities in asset-based finance, while offering diversified financing sources for originators.”