Pagaya, an artificial intelligence (AI) powered investment manager, has closed on its 5th capital markets transaction this year for a $200 million asset-backed security. Pagaya reports that it now has $1.2 billion in assets under management (AUM) having risen a solid 300% this year.
Pagaya’s uses AI to analyzes millions of data points to underwrite assets and manage risk. The firm’s data-driven investment strategy is said to have consistently produced above-market-average returns for investors.
Payaga states that its “investment opportunity pipeline” is expected to hit $500 million per month at the end of 2020.
Pagaya’s CEO and co-founder, Gal Krubiner, commented on the announcement:
“After significantly investing in the development of proprietary AI analytics, our growth has skyrocketed as our state-of-the-art algorithms have unlocked significant investment opportunities for clients,” said Krubiner. “Pagaya’s achievements wouldn’t have been possible without the dedication of our entire team. We surpassed our targets for 2019 and have adjusted our goals for 2020 accordingly — this is just the beginning.”
Harvey Golub, a Wall Street legend and retired Chairman and CEO of American Express, and Pagaya board member, stated:
“Asset management hasn’t significantly evolved in the last 30 years, despite the proliferation of data and firms racing to adopt advanced technologies. Pagaya has accomplished what is just a hope and a dream for most firms and is ushering in a new era of asset management.”
The company was founded in 2016 and has offices in both New York and Tel Aviv.