Forever-changing asset management, Pagaya sets a new standard with its technology
- Mega funding round amid global economic crisis signals heightened demand for Pagaya’s data-driven investment strategies
- Pagaya reopens consumer credit ABS market with an unprecedented $200 million ABS, yet again proving the resilience of its AI-based offering
NEW YORK & TEL AVIV, Israel–(BUSINESS WIRE)–Pagaya, a global financial technology company using artificial intelligence (AI) to reshape asset management and institutional investment, today announced a $102 million Series D funding round led by a prominent strategic financial institution. Aflac Global Ventures (the venture capital holding company of top insurance firm, Aflac Incorporated), Poalim Capital Markets (the investment banking arm of Bank Hapoalim), Viola, Oak HC/FT, Harvey Golub (Pagaya board member and former Chairman and CEO of American Express), Clal Insurance Ltd., GF Investments, and Siam Commercial Bank (through its Digital Ventures arm) participated in the round.
In the four years since launching, Pagaya has grown to manage over $1.6 billion of assets for banks, insurance companies, pensions funds, asset managers, and sovereign wealth funds entirely with its sophisticated AI.
“The world is changing quickly and investors need a performance edge — more and more are turning to Pagaya,” said Gal Krubiner, Pagaya’s CEO and co-founder. “We continue to unlock unprecedented value with our AI even during extreme market stress. Closing a round of this magnitude, with such a high-quality group of investors, is a testament to the hard work of the Pagaya team.”
Pagaya effectively re-opened the consumer credit asset-backed security (ABS) market in May with a $200 million ABS fully managed by its AI — the first issuance amongst marketplace lenders in months, and the firm’s seventh deal to date. The firm’s total ABS issuance is now over $1 billion in just a year and a half.
“It’s extraordinary to see the Pagaya team deliver on their promise to bring in a new era of asset management using unparalleled technology,” said Harvey Golub, Retired Chairman and CEO of American Express, and Pagaya board member. “The firm continues to significantly and effectively innovate in a space that has failed to evolve for decades. Pagaya is driving the future of asset management.”
“Working with Pagaya’s exceptional founding team has been an amazing experience,” said Avi Zeevi, Chairman of Pagaya and a General Partner and co-founder of Viola Ventures. “Through their vast understanding of financial markets and unmatched technological expertise, they’ve disrupted global asset management and have solidified their rank as an industry leader.”
Pagaya will use the investment to hire more top tier data scientists, develop its technology further, and continue its pursuit of new asset classes, such as real estate and other fixed-income assets like auto loans, mortgages, and corporate credit.
The firm’s growing AUM, speed between ABS deals, expansion of its Origination Group, and the Series D investment all point to the monumental transformation of the lending market. Pagaya’s data-driven asset management has set a new standard.
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 consistently deliver a high and scalable performance edge. The firm’s total consumer credit ABS issuance is over $1 billion. Founded in 2016 by seasoned finance and technology professionals, Pagaya has headquarters in New York and Tel Aviv.
About Aflac Global Ventures
Aflac Global Ventures is the corporate venture capital holding company of Aflac Incorporated. Aflac Global Ventures manages a $400 million global corporate venture fund. The fund invests in early, growth and late-stage companies in the healthcare, insurtech and fintech space with emphasis on digital applications designed to improve the customer experience, gain efficiencies and develop new markets as well as companies developing new and emerging technologies.
About Poalim Capital Markets
Poalim Capital Markets is Israel’s leading investment bank providing a full range of global products and services. PCM is a subsidiary of Bank Hapoalim, Israel’s largest financial group. Since its establishment in 1990, PCM has played a major role in shaping the Israeli economy by providing international investment banking services, advising on numerous M&A transactions, structuring private equity funds, and leading the local underwriting market (through Poalim IBI). PCM’s diversified Private Equity (PE) platform manages and monitors the group’s private equity investment activities locally and internationally, including direct investments and co-investments across a wide range of sectors: alternative energy, life sciences, mezzanine, infrastructure, distressed, turnaround and growth equity. Together with its US strategic partner, William Blair & Company, PCM offers clients end-to-end, best-of-breed international investment banking solutions and advisory services, including public offerings on US exchanges, mergers & acquisitions and cross border private placements. PCM, in conjunction with international partners in China and India, provide investors and businesses a broad range of cross-border opportunities in some of the fastest growing markets in the world. Poalim Asia Direct, based in Beijing, China, provides tailor-made solutions to foreign corporations seeking the most effective entry, expansion and investment opportunities in China’s growing markets. PCM holds 19.97% of Poalim IBI’s shares.