Pagaya (NASDAQ: PGY) has received $75 million from Oak HC/FT in the form of a convertible perpetual preferred security. According to a corporate statement, the additional capital will be used to pursue strategic investments, including acquisitions. Oak HC/FT is a long-time investor in Pagaya.
Pagaya is a lending as a service provider. Pagaya utilizes AI and analytics to improve the financing process.
The preferred security converts at $1.25, which reflects a premium of approximately 36% to Pagaya’s closing price on April 19, 2023.
Pagaya co-founder and CEO Gal Krubiner said the funding provides capital to pursue M&A opportunities while delivering value for their investors.
“As the premier Fintech network, Pagaya is in a position of strength to provide our synergistic platform to companies looking to thrive in the current market environment.”
Annie Lamont, Co-Founder & Managing Partner of Oak HC/FT, said they have been committed to Pagaya for a long time due to its unique platform and “best in class management team.”
“AI is constantly evolving and driving efficiencies across the financial services sector, and Pagaya’s timely pursuit of strategic acquisitions is an effective approach to create an even stronger, more comprehensive offering. We look forward to continuing to work together as Pagya grows and scales its business and influences the future of finance, employing AI and machine learning,” said Lamont.
Pagaya added that it anticipates meeting or beating the high end of its guidance for Q1 2023. The company said it has experienced a strong start to 2023, including capital raised in the asset-backed securitization market of approximately $2.0 billion year-to-date.
“We are pleased with our strong performance thus far in 2023,” said Michael Kurlander, CFO of Pagaya. “We are grateful for the ongoing support of our longstanding institutional investors, as well as new investors on our platform, who have enabled the continued expansion of our network.”
Pagaya become a publicly traded firm following a SPAC deal in 2022.