Pagaya announced a forward flow agreement with Castlelake to purchase up to $500 million of auto loans sourced through its platform. This is the first auto‑focused partnership between the two firms, following a prior personal‑loan agreement.
The agreement expands Pagaya’s auto loan capacity and provides additional liquidity for its auto lending portfolio. It diversifies Pagaya’s capital sources and supports growth in the auto segment, which now accounts for a growing share of its overall originations.
In Q2 2025, Pagaya’s auto volume surpassed an annualized run rate of $2 billion, up 81.8% quarter over quarter. The auto segment now represents approximately 35% of Pagaya’s total originations, up from 28% in Q1 2025.
Pagaya’s overall financial performance remains strong. In Q4 2024, the company reported total revenue of $279 million, a 28% year‑over‑year increase, and adjusted EBITDA of $64 million.
Management highlighted that the growth in auto lending is driven by new underwriting capabilities and improved credit performance. Sanjiv Das, President and Co‑Founder, said the partnership with Castlelake strengthens Pagaya’s ability to scale its auto platform and deliver consistent returns to investors.
Castlelake, a global alternative investment firm specializing in asset‑based private credit, has a strategy focused on providing capital solutions to asset owners and originators. The partnership aligns with Castlelake’s focus on cash‑flowing opportunities and downside protection.
The forward flow agreement is part of Pagaya’s broader strategy to secure multi‑billion dollar capacity across various forward flow partnerships and asset‑backed securities programs. It also supports Pagaya’s AAA‑rated auto ABS program, underscoring the credit quality of its auto loan portfolio.
The deal marks a significant expansion of the Pagaya–Castlelake relationship into a new asset class and demonstrates Pagaya’s ability to build long‑term, enterprise‑level relationships with institutional investors.
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