Pagaya, an artificial intelligence (AI) powered investment manager, announced on Wednesday it has closed its sixth capital markets transaction for a $200 million asset-backed security (ABS), which was led by structuring agent Cantor Fitzgerald. The transaction brings Pagaya’s total assets under management (AUM) to $1.5 billion.
As previously reported, Pagaya 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. The company has stated its “investment opportunity pipeline” is expected to hit $500 million per month at the end of 2020.
“With a focus on fixed income and alternative credit, Pagaya offers a variety of discretionary funds to institutional investors including pension funds, sovereign wealth funds, insurance companies and banks. Pagaya uses a suite of artificial intelligence technologies and state-of-the-art algorithms to deliver a consistently high and scalable performance edge in the digital lending space.”
Pagaya has also revealed it placed three ABS deals in 2019 accumulating $750 million in assets from marketplace lenders to package into collateral for investment securities. Speaking about the latest transaction, Ed Mallon, Pagaya’s Chief Investment Officer, stated:
“It’s exciting to see such high demand for the unique structure and active management Pagaya offers. We look forward to unearthing innovative opportunities for investors while working alongside partners to provide novel financing solutions for consumers.”
Pagaya was founded in 2016 and has offices in both New York and Tel Aviv. It is backed by fintech investors Oak HC/FT, Viola Ventures and former AmEx Chairman Harvey Golub.