NEW YORK CITY, NEW YORK – February 27, 2018
Pagaya Investments (Pagaya), a financial technology company reshaping the asset management space using machine learning and big data analytics, today announced $75 million in debt financing from Citi. Pagaya today also announced the creation of the Opportunity Fund to meet growing institutional interest in consumer credit as an asset class. The Opportunity Fund is a new leveraged fund suite created by Pagaya using the debt financing. Prosper, a leading online lending platform, will sell loans to the Opportunity Fund.
Founded in 2016, Pagaya has raised to date $200 million in capital mainly from institutional investors and has dual headquarters in Tel Aviv, Israel, and New York City, New York. The company uses machine learning and data analytics to improve performance in the asset management space.
“Traditional models of asset management don’t serve the needs of institutional investors in a digital age. Pagaya’s track record in delivering consistent, positive returns to LPs since inception is a testament to our advanced approach,” said Pagaya’s co-founder and CEO Gal Krubiner. “Institutional investors have diverse and unmet needs in this area, including a more consistent performance profile and a greater degree of transparency. We are expanding our product offering today in support of that vision.”
Pagaya’s new Opportunity Fund will meet growing institutional interest in consumer credit as an asset class. The new product relies on the company’s proprietary technology suite and prudent use of leverage funds to actively manage the credit allocation and risk management functions.
“We are proud to support Pagaya as it grows and launches new initiatives,” said Ari Rosenberg, head of consumer finance at Citi. “This transaction is a great example of the continuing evolution of consumer credit as an asset class and growth opportunity.”
“We are excited to be a long-term deployment partner for the Opportunity Fund and work alongside Pagaya as the company helps open up new opportunities in the online consumer credit space,” said John Goldston, senior director of capital markets at Prosper.
About Pagaya Investments
Pagaya Investments (Pagaya) is a financial technology company reshaping the asset management space using machine learning and big data analytics to manage institutional money. With a focus on fixed income and alternative credit, Pagaya offers a variety of discretionary funds to institutional investors including pension funds, insurance companies and banks. Pagaya’s unique technology platform — Pagaya Pulse — runs on a suite of artificial intelligence technologies and state-of-the-art algorithms to deliver a consistently high and scalable performance edge. The company was founded in 2016 by seasoned finance and technology professionals with offices in New York and Tel Aviv.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
About Prosper Funding LLC
Prosper’s mission is to advance financial well-being. The Company’s online lending platform connects people who want to borrow money with individuals and institutions that want to invest in consumer credit. Borrowers get access to affordable fixed-rate, fixed-term personal loans. Investors have the opportunity to earn solid returns via a data-driven underwriting model. To date, over $10 billion in personal loans have been originated through the Prosper platform for debt consolidation and large purchases such as home improvement projects, medical expenses and special occasions.
Prosper Marketplace, Inc. was founded in 2005 and is headquartered in San Francisco. The lending platform is owned by Prosper Funding LLC, a subsidiary of Prosper Marketplace, Inc. Loans originated through the Prosper marketplace are made by WebBank, member FDIC.