Pagaya, a global financial technology company using artificial intelligence (AI) to reshape asset management, today announced the closing of a consumer credit asset-backed security (ABS) at $200 million led by structuring agent Cantor Fitzgerald.
This is Pagaya’s sixth securitization in the past year, bringing the firm’s total assets under management (AUM) to $1.5 billion. Pagaya worked with multiple consumer loan originators for this transaction and continues to expand the number of platforms that can access its PAID shelf. This latest ABS will be actively managed by Pagaya’s AI, like the five previous transactions.
“It’s exciting to see such high demand for the unique structure and active management Pagaya offers,” said Ed Mallon, Pagaya’s Chief Investment Officer.
Pagaya’s technology-driven originations offering (I-to-I Sourcing Network), has steadily grown over the past year, increasing the cadence and size of the firm’s ABS transactions. Pagaya’s I-to-I Sourcing Network unlocks opportunities that connect borrowers with institutions investing in data-rich alternative asset classes, such as consumer credit.
Mallon continued, “We look forward to unearthing innovative opportunities for investors while working alongside partners to provide novel financing solutions for consumers.”
Pagaya’s AI analyzes millions of data points to select and purchase individual loans instead of securitizing a pool of previously assembled assets. This data-driven, in-depth analysis unlocks more low-risk, high-yield opportunities for institutional investors.
Pagaya is a financial technology company reshaping asset management using machine learning and big data analytics to manage institutional money. With a focus on fixed income and alternative credit, Pagaya offers a variety of discretionary funds to institutional investors, including pension funds, insurance companies, and banks. Pagaya’s unique technology platform, Pagaya Pulse, runs on a suite of artificial intelligence technologies and state-of-the-art algorithms to deliver a high and scalable performance edge consistently. The company was founded in 2016 by seasoned finance and technology professionals with offices in New York and Tel Aviv.