June 20 (Reuters) – Private credit lender Castlelake will buy up to $1.2 billion in consumer installment loans from fintech firm Upstart (UPST.O), opens new tab to expand its foothold in the retail lending space, it said on Thursday.

The deal underscores how investment firms are increasingly pushing into businesses that have traditionally been dominated by banks as high interest rates and the fear of defaults force lenders to hesitate.