Pagaya, a startup bringing AI to the asset management industry, has hit a milestone with news that it is issuing and overseeing $100 million in actively managed asset-backed securities (ABS) led by structuring agent Cantor Fitzgerald.
Founded in 2016, US-Israeli Pagaya has built up a team of 20 data scientists and AI specialists, creating a platform that analyses millions of data points to assess risk in different financial instruments, identifies emerging alternative asset classes and seeks to generate a stable return.
The latest deal sees Pagay's assets under management jump to $450 million. For the new ABS, the firm's AI will be used to select and buy individual loans, a break from the traditional mechanics of securitising a pool of previously assembled assets.
Gal Krubiner, CEO, Pagaya, says: "We look forward to creating more opportunities like this in the future, and to driving the adoption of AI in traditional finance. We’re just a few years away from all collateralized loan obligations, mortgage-backed securities, and ABSs being managed by AI.”