Pagaya Closes $460 Million Revolving Personal Loan Facility

Pagaya Technologies Ltd. (NASDAQ: PGY) has closed a $460 million revolving personal loan facility that is expected to deploy approximately $850 million in total capital over a 24-month period, expanding the financial technology company’s funding capacity as originations grow across its lending network.

The transaction, PAID 2026-REV1, is Pagaya’s second revolving structure this year and is backed by consumer loans originated through the company’s network.

Unlike a conventional financing structure in which capital is deployed against a fixed pool of loans, the facility includes a 24-month reinvestment period. Excess cash generated by the portfolio can be used to purchase additional eligible loans during that window, allowing the initial $460 million transaction to support a substantially larger volume of capital deployment over its life.

Pagaya expects the structure to deploy approximately $850 million in total, giving the company greater visibility into future funding capacity while providing institutional investors with longer-duration exposure to consumer credit.

“This transaction is part of our long term funding strategy, with a unique two-year committed capital feature,” CEO and co-founder Gal Krubiner said. “You can expect us to expand more into these structures, like our recently announced auto forward flow, providing not just access to capital but higher visibility into future funding capacity.”

The facility is part of Pagaya’s broader effort to diversify the sources and structures used to finance loans originated across its network. The company has been developing both public and private capital solutions intended to address different requirements among institutional investors.

For Pagaya, predictable access to capital is an important part of scaling its model. The company uses machine learning and its data network to provide credit decisioning and other technology to lending partners, while its capital markets infrastructure connects originated loans with institutional funding.

The revolving format provides another mechanism for keeping that funding available as new loans are generated. Rather than requiring a new capital markets transaction each time a pool of assets is financed, the reinvestment feature allows capital to be redeployed into new collateral during the two-year revolving period.

That approach can provide greater continuity between consumer loan origination and institutional capital, particularly as Pagaya expands the volume of credit flowing through its network.

The company is also broadening its lending partner base across personal loans, auto loans and point-of-sale financing. Its recently announced auto forward-flow structure similarly reflects an effort to establish committed sources of capital that can support future originations rather than financing assets only after they have accumulated.

Pagaya’s technology and capital solutions are integrated into partner platforms through its proprietary API, allowing financial institutions and other lenders to use its credit technology within existing customer experiences.

PAID 2026-REV1 adds a longer-duration funding structure to that infrastructure. The initial $460 million commitment, combined with its reinvestment mechanism, is designed to provide both Pagaya and participating institutional investors with greater visibility over capital deployment for the next 24 months.

With approximately $850 million expected to move through the facility during that period, the transaction advances Pagaya’s strategy of pairing growth in loan originations with committed and diversified institutional funding.