AI fintech co Pagaya issues 2nd $100m asset backed security

Pagaya founders Photo: Inbal Marmari

The Israeli company says it is proving that AI can scale within traditional finance, growing to $650 million assets under management.

Israeli financial technology company Pagaya today announced that it is issuing a second $100 million in actively managed asset-backed securities (ABS) led by structuring agent Cantor Fitzgerald. The first $100 million was issued in February.

Pagaya says it is proving that AI can scale within traditional finance, growing to $650 million assets under management since its founding in 2016, including a $100 million debt-financing deal with Citi Bank. The company claims it is using AI to raise the standard return for low-risk investments, consistently out-performing incumbents.

Founded in Tel Aviv by Yahav Yulzari, Avital Pardo and CEO Gal Krubiner, Pagaya uses artificial intelligence (AI) to reshape asset management. Pagaya's team of 40 data scientists and AI specialists and 10 finance specialists analyze millions of data points to assess risk in different financial instruments, identify emerging alternative asset classes and seek to generate a stable return.

Pagaya chief investment officer Ed Mallon said, "We've proven our AI can create huge opportunities for institutional investors and we’re excited to continue enabling its adoption. What we're doing in the ABS market is just the beginning."

Published by Globes, Israel business news - en.globes.co.il - on July 3, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Pagaya founders Photo: Inbal Marmari
Pagaya founders Photo: Inbal Marmari
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