Pagaya Technologies LTD. (NASDAQ: PGY), a global technology company focused on AI-driven financial solutions, announced a new forward flow agreement with Castlelake, L.P., a global alternative investment firm specializing in asset-based private credit. This agreement facilitates the purchase of up to $2.5 billion in personal loan assets over a 16-month term, subject to the satisfaction of closing conditions.
This new arrangement is designed to provide Pagaya with additional funding capacity, supporting the accelerated growth of its personal loan program. It builds upon an initial forward flow agreement established between Pagaya and Castlelake in 2024, which committed up to $1 billion in capital over a 12-month period.
Evangelos Perros, CFO of Pagaya, commented on the agreement, stating, “This agreement underscores the improving diversification and efficiency of our funding infrastructure, and bolsters our growth, earnings power, and cash flow profile. We will continue to find ways to optimize both our funding mix and our balance sheet, reinforcing our statements of executing a self-funded growth plan without the need to raise equity capital.”
John Lundquist, Partner, Specialty Finance at Castlelake, remarked, “We are pleased to strengthen our partnership with Pagaya through this new agreement and expand our ability to provide Castlelake investors with what we believe to be attractive risk-adjusted opportunities. We believe Pagaya’s tech-driven platform can provide credit services to consumers in a format that supports efficient, scaled investment.”
Pagaya’s AI-driven network aims to facilitate access to consumer credit assets through its network of lending partners across three product verticals: personal loans, auto loans, and point of sale (POS). The collaboration with Castlelake is expected to be instrumental in funding Pagaya’s expansion within the personal loans sector, including enabling increased volumes from both newly onboarded and existing lending partners.
Sanjiv Das, President and Co-Founder of Pagaya, added, “The continued expansion of our funding program demonstrates Pagaya’s ability to consistently deliver attractive assets to investors. We’re proud to build our partnership with Castlelake, whose commitment helps enable us to accelerate the growth of our platform.”
Pagaya (NASDAQ: PGY) is a global technology company that utilizes machine learning, a data network, and an AI-driven approach to provide consumer credit and other products for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver user experiences and greater access to the mainstream economy.
