Pagaya closed a $500 million personal loan asset‑backed securitization (ABS) transaction, designated PAID 2025‑7, on Monday, October 27, 2025. The deal is AAA‑rated by Kroll Bond Rating Agency (KBRA) and is backed by consumer loans originated on Pagaya’s network.
The transaction brings Pagaya’s total capital raised for personal loans year‑to‑date to more than $4 billion, marking the seventh fully‑prefunded PAID transaction of 2025 and the 15th securitization across all asset classes. It attracted 72 unique investors to date.
With over 150 institutional investors in its funding network, Pagaya continues to broaden its investor base and enhance funding diversification. Since 2018, the company has completed 79 securitizations, raising more than $32 billion to support loan origination through its AI‑driven platform.
The fully‑prefunded structure means Pagaya secured the entire $500 million in advance, allowing it to issue the ABS without needing to raise additional capital at issuance. This model supports Pagaya’s capital‑light business strategy, keeping credit risk off its balance sheet.
Sahil Chandiramani, Head of Capital Markets at Pagaya, said the transaction demonstrates the continued confidence of investors in Pagaya’s AI‑powered underwriting and risk‑management framework.
The financing event strengthens Pagaya’s balance sheet, providing additional capital to support its expanding loan origination volume and enabling the company to maintain its competitive edge in the AI‑powered lending market.
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