Alternative asset manager TPG Inc is to acquire $2.4bn of consumer loans from OneMain Holdings Inc, as private credit firms boost their footprint in the consumer credit market traditionally dominated by banks, according to a report by Bloomberg.
The forward-flow agreement, under which TPG buys loans before they are originated, runs through June 2028 and supplements a prior $1.3bn arrangement.
OneMain specialises in personal and auto loans for non-prime borrowers. The deal allows the lender to free capital for new lending while giving TPG increased exposure to consumer finance.
TPG has been actively expanding in asset-based lending, including its 2023 acquisition of Angelo Gordon & Co, and recently agreed to purchase $1bn of leases from Elevex Capital. Forward-flow agreements like these are becoming more common as private credit managers seek to capture market share from traditional banks and diversify their portfolios.
