Pagaya Receives $75 Million from Longstanding Investor Oak HC/FT to Accelerate M&A Strategy

Leading fintech investor, Oak HC/FT, to support the next phase of growth for Pagaya’s differentiated platform on the heels of GIC’s increased investment and extended partnership

Pagaya expects to deliver the high end or exceed its 1Q23 guidance ranges for Network Volume, Revenue and Adjusted EBITDA

Pagaya Technologies LTD, a global technology company delivering artificial intelligence infrastructure for the financial ecosystem, announced that its longtime investor, Oak HC/FT, is investing $75 million in Pagaya in the form of a convertible perpetual preferred security. The preferred converts at $1.25, which reflects a premium of approximately 36% to Pagaya’s closing price on April 19, 2023. The investment further strengthens Pagaya’s positioning to pursue strategic investments, primarily acquisitions, in the current market, driving value alongside its already strong organic growth profile.

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Pagaya is at the forefront of leveraging AI and advanced analytics to increase global access to financial products and services. Making strategic acquisitions is an important part of this vision, combining leading companies to create broader and unique offerings for customers. Pagaya’s purchase of Darwin Homes in January 2023 is a prime example of this, expanding its SFR platform into a next-generation, fully integrated offering. The investment from Oak HC/FT will empower Pagaya to continue engaging leading, founder-based fintech companies, who will benefit from the Company’s unique AI capabilities.

“This investment gives us the ability to pursue attractive M&A growth opportunities, while continuing to deliver long-term value for our partners and investors,” said Gal Krubiner, Co-Founder and CEO. “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.”

“Oak has been a long-term, committed partner of Pagaya, due to its unique platform, mission and best-in-class management team,” said Annie Lamont, Co-Founder & Managing Partner of Oak HC/FT. “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.”

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Goldman Sachs & Co. LLC acted as exclusive financial advisor to Pagaya on the investment.

Strong Momentum to Begin 2023

In addition, Pagaya now expects to be at the high end of or exceed its previously provided guidance for the first quarter of 2023 for Network Volume, Total Revenue and Other Income, and Adjusted EBITDA. This continues the Company’s already strong start to 2023, including capital raised in the asset-backed securitization market of approximately $2.0 billion year-to-date, GIC’s existing fund agreement extension for three more years, and an expanding and diversifying set of investors.

“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.”

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