Upstart Holdings, Inc. saw its stock price surge 5.96% during pre-market trading on Wednesday. The significant upward movement followed the announcement of a major funding agreement.

The fintech company has entered into a 24-month forward-flow agreement with funds managed by Centerbridge Partners. The deal allows Centerbridge to purchase up to $1.2 billion of consumer loans originated on Upstart's platform, significantly expanding the company's funding capacity through a multi-year capital commitment.

This agreement represents a follow-up to an initial transaction between Upstart and Centerbridge in 2024 and provides Upstart with enhanced financial stability and growth potential for its lending platform operations.