Business Fintech News

Pagaya Closes $200 Million Consumer Credit ABS

Pagaya Hires Five Finance Industry Veterans, Further Driving Firm’s Transformation of Asset Management

Firm Reaches $1.5 Billion Assets Under Management, Expands PAID Shelf

Pagaya, a global financial technology company using artificial intelligence (AI) to reshape asset management, 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.

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“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.

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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.

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