Octane, a financing company for the powersports industry, announced May 6 that it has agreed to sell a portfolio of $200 million of fixed-rate installment powersports loans to Yieldstreet, a private market investing platform.
The portfolio of whole loans was newly originated by Octane’s in-house lender, Roadrunner Financial, and will be serviced by Octane’s in-house loan servicer, Roadrunner Account Services, LLC. Yieldstreet received financing from JPMorgan to facilitate the transaction.
This is Octane’s third whole loan sale to Yieldstreet. About 18 months ago, Octane sold a total of $280 million of fixed-rate powersports loans to Yieldstreet via two transactions, the first of which was Octane’s first whole loan sale and Yieldstreet’s inaugural private credit facility. Octane has sold or entered forward flow commitments of over $2.2 billion to date.
“Yieldstreet has been a strong partner for Octane since the fourth quarter of 2023, and we are both pleased and grateful for their continued interest in and commitment to our business,” says Steven Fernald, president and chief financial officer at Octane.
We look forward to deepening our relationship with them as we continue to drive growth for dealers and OEMs with our innovative solutions and seamless, digital experience. — Steven Fernald
Yieldstreet’s managing director and head of credit investments, Fahd Basir says the transaction strengthened the relationship with Octane, a partnership that has generated $500 million.
“We look forward to future opportunities with Octane’s exceptional team as Yieldstreet continues to provide individual investors with broader access to attractive private markets investments previously limited to institutional capital,” says Basir.
This announcement follows a period of significant momentum for Octane. The company recently surpassed $6 billion in aggregate originations and grew originations by 36% year-over-year in 2024.
What specific factors, according to Fahd Basir, make powersports loans attractive investments, especially in the current economic climate?
Archyde interview: Fahd Basir on Yieldstreet’s Expanding Partnership with Octane in the Powersports Market
Archyde News recently spoke with Fahd Basir, Managing Director and Head of Credit Investments at Yieldstreet, to discuss their expanding partnership with Octane, a financing company in the powersports industry. This follows Octane’s recent announcement of selling a $200 million portfolio of fixed-rate installment powersports loans to Yieldstreet.
The Growing Relationship Between Yieldstreet and Octane
Archyde: Mr. Basir, thank you for joining us. Can you give us some insight into the meaning of this third whole loan sale between Yieldstreet and Octane?
Fahd Basir: Thank you for having me. This transaction underscores the strong relationship Yieldstreet has built with Octane. It’s a testament to the quality of their assets and our shared vision for providing investors with access to compelling private market opportunities. To date we have reached over $500 million in partnership.
A Deeper Dive into the powersports Financing
Archyde: Could you elaborate on the appeal of these powersports loans from an investment perspective, particularly given the current economic climate?
fahd Basir: Powersports, like motorcycles, ATVs, and watercraft, is a sector that demonstrates resilience. Demand is consistently strong, and the loans are backed by tangible assets. This offers a degree of security that investors find attractive, especially in a landscape marked by economic uncertainty. The fact that these are fixed-rate loans also provides predictability.
The Role of Private market Investing
Archyde: How does Yieldstreet’s platform contribute to democratizing access to private market investments within the powersports sector?
Fahd Basir: Historically, these types of investments have been limited to institutional investors. Yieldstreet is changing that by providing individual investors with access to these opportunities. We carefully vet and structure these deals, making them available to a broader audience, empowering individual investors to diversify their portfolios. Octane’s innovative approach to finance in the powersports space has proven to be a good access point for our investors.
Future Outlook and Growth
Archyde: With octane’s rapid growth, including surpassing $6 billion in originations, do you see further opportunities for collaboration in the future?
Fahd Basir: Absolutely. Octane’s team has an excellent track record, and their growth trajectory is remarkable. we anticipate there will be further opportunities to collaborate and deepen our relationship. We are always evaluating how we can expand our presence within the powersports financing sector and are excited about what the future holds and look forward to future opportunities with Octane.
A Forward-Thinking Question
Archyde: How do you see the evolution of partnerships between financing companies and investment platforms shaping the landscape of consumer finance and investments over the next few years? We welcome our readers thoughts in the comments.
Fahd Basir: We’re seeing an evolution toward greater collaboration. The ability to access to a wider range of investment opportunities for investors. It’s a trend that will likely continue as we strive to offer diversified investment options that meets the needs of individual investors.
