FinTech: Investors Beat a $102M Path to Pagaya’s AI-Driven Asset Management

June 18, 2020 | FinTech, News

COVID notwithstanding, Pagaya wrapped up a sizable funding round with participation from top-flight investors.

Global fintech Pagaya, which uses artificial intelligence in asset management and institutional investment, notched up $102 million in a Series D round led by GIC, Singapore’s sovereign wealth fund. With the latest funding, Pagaya has raised $147 million since its launch in 2016. (CrunchBase)

Other investors included 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).

Pagaya’s business

Pagaya has developed a proprietary technology suite that includes advanced machine learning technologies and big data analytics. This model helps Pagaya provide alternative, data driven investment management in fixed income and alternative credit markets to institutions and high net worth investors.

The company announced last week that it had closed a $ 200 million consumer credit ABS last month.

“Our unique use of machine learning paired with financial expertise makes it possible to consistently deliver low-risk, high-yield investment opportunities for institutional investors even during extreme market stress,” said Gal Krubiner, Pagaya’s CEO and co-founder.

The company claimed the deal was “historic” and effectively re-opened the ABS market.

The company’s aggregate issuance during the last year and a half now stands at over $1 billion.

Use of funds

Pagaya will use the funds from Series D to further develop its AI technology and hire more data scientists.

It also intends to branch out into new alternative classes such as real estate, and fixed-income assets such as auto loans, mortgages and corporate credit.

The company said it is on track to offer investment opportunities worth $500 million per month by the end of 2020.

“The world is changing quickly and investors need a performance edge — more and more are turning to Pagaya,” said Krubiner in a statement. “We continue to unlock unprecedented value with our AI.”

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