Pagaya, a New York and Tel Aviv, Israel-based global financial technology company using artificial intelligence (AI) to improve asset management, raised $25m in Series C funding.
The round was led by Oak HC/FT with participation from 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 company intends to use the funds 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.
Founded in 2016 by Gal Krubiner, CEO, 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, the company offers a variety of discretionary funds to institutional investors, including pension funds, insurance companies and banks.
Its 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. Pagaya analyzes hundreds of millions of data points and captures economic and market data to perform asset underwriting and improved risk assessment compared to what traditional asset management firms can achieve.
In the three years since launch, the company 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.