Pagaya Technologies Ltd. (NASDAQ: PGY) has completed the acquisition of Theorem Technology, Inc., a machine-learning underwriting technology company that has facilitated billions of dollars of credit since its establishment in 2014. With this acquisition, the combined credit fund platform now exceeds $3 billion in assets under management (AUM).
This acquisition is expected to enhance Pagaya's market-leading capabilities, diversify its funding sources, and drive capital efficiency. The company's network of 31 top lenders in the United States will provide fund investors with access to credit assets generated by Pagaya, presenting growth opportunities across the lending ecosystem.
Pagaya CEO Gal Krubiner expressed enthusiasm about the acquisition, highlighting the combined capabilities that will better meet institutional demand for consumer credit, diversify funding sources, and improve capital efficiency. He anticipates accelerated profitable growth and the fulfillment of their mission through this strategic move.
Theorem's founder and chief investment officer, Hugh Edmundson, also shared his excitement about joining forces with Pagaya, emphasizing the potential for creating more opportunities for limited partners, employees, and stockholders. The combination of technology platforms and funding capabilities is expected to deliver a unique solution for the U.S. lending ecosystem at an increased scale.
With a focus on reshaping the financial services ecosystem, Pagaya leverages machine learning, a vast data network, and an AI-driven approach to provide consumer credit and other financial products for its partners, their customers, and investors. The company's proprietary API and capital solutions aim to deliver seamless user experiences and increase access to the mainstream economy. Following these announcements, the company's shares moved 4.6%, and are now trading at a price of $12.55. If you want to know more, read the company's complete 8-K report here.
