Pagaya, a New York and Tel Aviv, Israel-based financial technology company using AI to bring innovation to the asset management and institutional investment markets, raised $14m in Series B funding.
The round was co-led by Oak HC/FT and Harvey Golub, former Chairman and CEO of American Express, with participation from:
– GF Investments (a New York-based family office),
– Siam Commercial Bank (one of the largest banks in Thailand, through Digital Ventures),
– Clal Insurance Ltd. (one of the largest insurance companies in Israel), and
– Viola Ventures (an Israeli fintech investor).
As part of the investment, Golub will join the company’s board, as well as 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.
The company intends to use the funds to accelerate its tech-driven approach to asset management, further the development of its proprietary algorithm to enter new data-rich asset classes, grow its 20-person-strong investment team of data scientists and AI specialists, build a global sales force, and launch new investment strategies in the coming year.
Co-founded in 2016 by Yahav Yulzari, Avital Pardo and Gal Krubiner (CEO), Pagaya provides an AI-based asset management platform which manages institutional money by investing in market opportunities previously inaccessible to the asset management industry.
Its algorithm analyzes millions of data points to assess risk in different financial instruments, identify emerging alternative asset classes and generate an excess return in those sectors (such as the multitrillion-dollar consumer credit lending market) for institutional investors.
The company has a diverse client base that spans banks, insurance companies, pension funds, asset managers and high net worth investors.
Pagaya, which also closed a $75m debt-financing deal with Citi and hired Ed Mallon (a 20-year BlackRock veteran) as its Chief Investment Officer, currently manages $250m in capital.