Business
Pagaya Announces Agreement to Purchase Leading Consumer Credit Funds Manager, Theorem Technology, Inc.
The transaction will unite Theorem’s institutional fund management business and engineering capabilities with the Pagaya network Upon closing, the company
About this update from Pagaya Technologies Ltd.
[{"type":"text","content":"\nThe transaction will unite Theorem’s institutional fund management business and engineering capabilities with the Pagaya network\n\n\nUpon closing, the company will have more than $3 billion of fund capital\n\n\nAcquisition is expected to close in Q4 2024 and be accretive in 2025, while driving funding diversification and capital efficiency for Pagaya\n\n\n NEW YORK--(BUSINESS WIRE)--\nPagaya Technologies LTD. (NASDAQ: PGY) (\"Pagaya\" or “the Company”), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced that it has agreed to purchase 100% of Theorem Technology, Inc. (“Theorem”). Theorem has powered billions of dollars of credit investments across its network since its founding in 2014 with stable, long-term capital, utilizing its proprietary technology.\n\n\nThe combination brings Theorem’s consumer credit funds as well as its engineering and data science expertise under the Pagaya umbrella. This strategic transaction solidifies Pagaya’s overall mission to serve its partners, their customers and investors by expanding access to credit across the lending ecosystem.\n\n\nIn aggregate, Pagaya’s fund management business is expected to grow to more than $3 billion of capital in investment vehicles separate from and incremental to the Company’s market-leading securitization program, in line with the Company’s financial strategy to diversify its funding sources and enhance its capital efficiency. In addition to its existing investment opportunities, investors in Theorem’s credit funds will now have access to credit assets generated by Pagaya’s network of 30 of the top lenders in the US, including over $180 billion of application volume per quarter.\n\n\n“We are very excited about Theorem and its amazing employees becoming a part of Pagaya,” said Pagaya’s CEO, Gal Krubiner. “I have known the team for several years. As we have seen network volume and institutional investor demand grow exponentially, I believe that their institutional fund management expertise will sharpen Pagaya’s already market-leading capabilities. In addition, Theorem will have access to the Pagaya network’s unique investment sourcing flow, and Pagaya will be able to fully take advantage of the impressive machine learning investment technology that underlies Theorem’s private credit investment platform.”\...