Pagaya Technologies LTD. announced the closing of PAID 2025-1, a $600 million AAA-rated personal loan asset-backed securitization (ABS) transaction. This marks the company's first ABS deal of 2025, demonstrating strong capital markets demand for its AI-enabled consumer credit assets. The transaction was upsized from its original size of $500 million.
The deal was substantially oversubscribed, with 32 unique investors participating, the majority of whom were repeat investors. This highlights continued investor confidence in Pagaya's unique funding model and AI capabilities. Since 2018, Pagaya has raised over $26.6 billion across 65 ABS transactions.
Sahil Chandiramani, Pagaya’s Head of Capital Markets, stated that this transaction continues their benchmark programmatic issuance activity. He emphasized that the company's funding model, AI capabilities, and relationships provide ample size for thoughtful investment in consumer credit with a lower cost of capital.
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