Pagaya, a global financial technology company using artificial intelligence to reshape asset management and institutional investment, received a $102 million Series D funding round. Aflac Global Ventures (the venture capital holding company of 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, 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 more than $1.6 billion of assets for banks, insurance companies, pensions funds, asset managers and sovereign wealth funds entirely with its AI.
“The world is changing quickly, and investors need a performance edge — more and more are turning to Pagaya,” Gal Krubiner, CEO and co-founder of Pagaya, said. “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 more than $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,” Golub said. “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,” Avi Zeevi, chairman of Pagaya and a general partner and co-founder of Viola Ventures, said. “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 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.
