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 Chief Information Officer 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.
Pagaya is a financial technology company reshaping asset management 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 high and scalable performance edge consistently. Founded in 2016 by seasoned finance and technology professionals, Pagaya has offices in New York and Tel Aviv.
About Oak HC/FT
Founded in 2014, Oak HC/FT (http://oakhcft.com) is the premier venture growth-equity fund investing in Healthcare Information & Services (“HC”) and Financial Services Technology (“FT”). With $1.1 billion in assets under management, we are focused on driving transformation in these industries by providing entrepreneurs and companies with strategic counsel, board-level participation, business plan execution and access to our extensive network of industry leaders. Oak HC/FT is headquartered in Greenwich, CT, with offices in Boston and San Francisco. Follow Oak HC/FT on Twitter, LinkedIn, and Medium.
About Clal Insurance Company, Ltd.
Clal Insurance is one of the leading and biggest insurance companies in Israel.
out GF Investments
GF Investments is a leading family office based in New York City that specializes in private equity investments.
About Siam Commercial Bank / Digital Ventures
Siam Commercial Bank PCL is one of Thailand’s leading universal banks. Established by Royal Charter in 1906 as the first Thai bank, SCB ranks second in market capitalization among Thai financial institutions as of the end of June 2018 (US$ 12.3 billion). The Bank’s total assets are US$ 94.5 billion (as of Aug 2018). More information is available on the Bank’s website at www.scb.co.th. Founded in 2016, Digital Ventures, a subsidiary of Siam Commercial Bank, is a company that promotes innovation in financial technology. Following the bank’s strategy to enter digital transformation, Digital Ventures aims to be a part of driving changes in the banking industry through investment, innovation and supporting Thai businesses to grow with SCB. For more information, visit www.dv.co.th.
About Viola Ventures
Viola Ventures is a venture capital firm, empowering early stage start-ups to become global leaders. Founded in 2000, Viola Ventures manages over $1B across five funds, with a significant number of investors from the US, Asia, Europe, and Israel. It is managed by six investing partners, solely dedicated to early-stage tech investments, and has backed a substantial share of Israel’s exits, including Actimize, RedBend, DesignArt, CopperGate, Exelate and ECI. The fund is part of Viola - Israel’s leading technology-oriented investment group with over $3B assets under management. The group has invested in over 200 technology companies. For more information, www.viola-group.com.