480: The FinTech Startup Using Machine Learning Disrupt Asset Management
By Neil C. Hughes - Tech Podcast and Startup Stories
Pagaya is a fintech company using machine learning and data analytics to reshape the asset management space. They appeared on my radar after recently announced its launch in the U.S. with $75MM in debt financing from Citigroup. Pagaya will use the funding to create a new leveraged fund suite called the Opportunity Fund. Financial technology has come a long way to improve the experience of individual investors, but there has been little progress made at the institutional level. After learning that the company also secured a 20-year BlackRock veteran as chief investment officer, I wanted to find out more about how Pagaya is working with the largest lending marketplaces to retool the backend and deliver better returns for institutions. Founded in Tel Aviv in 2016, Pagaya has raised $200MM in capital to date, mainly from institutional investors. Utilizing state-of-the-art, machine learning algorithms, Pagaya also serves the institutional markets with a focus on independent, alternative asset management. Being highly data-driven and fragmented in nature, scaling up investments in alternative credit, including consumer credit, demands a new approach--one in which traditional tools & investment strategies become increasingly irrelevant. Pagaya CEO, Gal Krubiner shares his FinTech StartUp story and how he specializes in innovative & sophisticated credit structure products (ABS structures).