Technology-focused private credit firm Edge Focus has expanded its auto program via a $500m (£374.4m) loan partnership with a large private credit manager.
The partnership will see the private credit partner, which has not been named, committing up to $500m in funding to purchase consumer auto receivables procured via the joint venture with Edge Focus.
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The receivables will be underwritten by Edge Focus’s proprietary portfolio analytics and performance monitoring platform, Origin, which, after each purchase, will evaluate loan performance.
Edge Focus will also commit capital toward the purchase of consumer auto receivables under the joint venture.
To date, it has supported the origination of over $3bn in consumer loans.
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“Our auto program has been an increasingly important part of the Edge Focus platform as we have continued to refine our underwriting and portfolio monitoring technology,” said Sean Mills, chief technology officer at Edge Focus. “This partnership is an important step to solidifying our role in the auto landscape and setting us up for sustainable growth.”
Over the past year, Edge Focus has grown its team and capabilities in its consumer auto business, adding an auto-focused team led by Mills and senior researcher Michael Andrews.
The firm said it expects to evaluate more than $10bn of auto loan opportunities in the next year.
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