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New revolving warehouse line for personal loans drives capital efficient growth and longer-term funding visibility
Pagaya Technologies Ltd. (“Pagaya”), a global technology company delivering AI-driven product solutions for the financial ecosystem, announced the closing of its inaugural Variable Funding Note (VFN) facility with ATLAS SP Partners (“ATLAS”), the warehouse finance and securitized products business majority owned by Apollo Funds. The new revolving structure expands Pagaya’s committed capital strategy, establishing nearly $700 million in funding capacity for its personal loan platform to support long-term, scalable origination growth.
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Unlike traditional asset-backed securitization (ABS) issuances, Pagaya’s VFN operates as a revolving committed capital facility, allowing Pagaya to draw, repay and redeploy liquidity on an as needed basis. By establishing a dedicated vehicle to season newly originated loans prior to securitization, the facility enhances operational flexibility and builds real-time performance data to optimize execution for Pagaya’s AAA-rated PAID ABS platform and support continued diversification of its securitization activities.
“Securing this VFN with ATLAS is the first step in expanding our warehouse capabilities with banks and other financing partners,” said Jon Dobres, Chief Financial Officer at Pagaya. “As we expand our funding strategy with diverse sources of capital, we drive profitable growth with enhanced funding visibility.”
The VFN program provides a committed, revolving capital structure that functions as a strategic credit facility. Funding capacity is targeted at nearly $700 million for personal loans, giving institutional partners direct, diversified access to consumer credit while offering Pagaya multi-quarter liquidity visibility.
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