Pagaya Raises $25 Million in Series C Round
Pagaya, a global financial technology company using artificial intelligence (AI) to reshape asset management, today announced a $25 million Series C funding round. Oak HC/FT led the round with participation from Pagaya’s seed investor Viola Ventures, Clal Insurance Ltd., GF Investments, Harvey Golub (Pagaya board member and former chairman and CEO of American Express), and Siam Commercial Bank (through its Digital Ventures arm).
The funding comes on the heels of Pagaya creating the first-ever $100 million consumer credit asset-backed security (ABS) fully managed by AI, which the company announced in February.
In the three years since launch, Pagaya has grown to manage $450 million for banks, insurance companies, pensions funds, asset managers and sovereign wealth funds all looking to find new sources of attractive risk-adjusted returns and capitalize on the efficacy and efficiency of Pagaya’s AI.
“We’re thrilled to have the continued support of our investors,” said Gal Krubiner, Pagaya’s CEO and co-founder. “We are seeing the amazing potential of AI to disrupt asset management and this capital will accelerate our effort.”
Pagaya’s asset management team of 30 data scientists and AI specialists uses proprietary machine learning techniques to conduct the most comprehensive bottom-up analysis and risk management of assets. The company analyzes hundreds of millions of data points and captures economic and market data to perform asset underwriting and better risk assessment compared to what traditional asset management firms can achieve. As a result, Pagaya generates a competitive investment edge for institutional investors.
“We’ve seen first-hand what the Pagaya team can accomplish,” said Dan Petrozzo, Venture Partner at Oak HC/FT, former partner and global head of investment management technology at Goldman Sachs, and former CIO of Fidelity Investments. “Institutions looking for stable investment solutions with higher returns will continue to turn to Pagaya as there is just no one else creating comparable opportunities.”
The company will use the investment to develop its technology further and pursue new asset classes, such as real estate and other fixed-income assets like auto loans, mortgages and corporate credit.
The new consultancy to specialize in AI-based risk management.
The labs in London and Toronto will analyse data from the global banking and markets business.
There was a shift in focus towards data, machine learning and artificial intelligence.
Without a solid policy, new technology can alienate clients and hurt the bottom line.
North America is projected to be the largest market through 2023.