Pagaya issues $100 million asset backed securities


Israel’s Pagaya said it issuing and overseeing $100 million in actively managed asset-backed securities led by structuring agent Cantor Fitzgerald.

Pagaya uses machine learning and big data to manage institutional money.

According to data compiled by Reuters News, the latest addition brings Pagaya’s assets under management to $450 million since its founding in 2016. Its artificial intelligence (AI) analyses data to assess risk in financial instruments, identifies emerging asset classes and seeks to generate a stable return.

Pagaya will use its AI to select and buy individual loans, rather than the traditional method of securitising a pool of previously assembled asset-backed securities.

Pagaya is targeting close to $1 billion in assets under management by year-end, Gal Krubiner, co-founder and CEO of Pagaya, told Reuters.

Customers include Israeli banks Hapoalim and Leumi, Citi, European banks and Israeli insurers.

It has raised $20 million from Viola Ventures, Oak, Thailand’s Siam Commercial Bank and Clal Insurance, among others, and raised $75 million in debt financing from Citi.