Pagaya Technologies Ltd., a global fintech delivering AI-driven financial solutions, has announced a new forward flow agreement with Castlelake, L.P., a leading alternative investment firm, to purchase up to $2.5 billion in personal loan assets over 16 months, subject to closing conditions. This deal, doubling the size of their 2024 $1 billion agreement, enhances Pagaya’s funding capacity and supports its self-funded growth strategy.
The new agreement builds on Pagaya’s 2024 forward flow deal with Castlelake, which committed $1 billion over 12 months. “This agreement underscores the improving diversification and efficiency of our funding infrastructure, and bolsters our growth, earnings power, and cash flow profile,” said Evangelos Perros, Pagaya’s CFO. The $2.5 billion deal supports Pagaya’s personal loan program, enabling increased volumes from new and existing lending partners, and contributes to an estimated $5 billion in total forward flow capacity.
Castlelake, managing $22 billion in assets, sees Pagaya’s AI-driven platform as a scalable solution for consumer credit. “We are pleased to strengthen our partnership with Pagaya through this new agreement and expand our ability to provide Castlelake investors with what we believe to be attractive risk-adjusted opportunities,” said John Lundquist, Partner, Specialty Finance at Castlelake. Pagaya’s technology leverages machine learning and a vast data network to deliver high-quality credit assets, enhancing access to personal loans, auto loans, and point-of-sale financing.
Pagaya’s stock closed at $23.785 on July 15, 2025, near its 52-week high of $23.93, reflecting a 148% year-to-date increase and a market cap of $1.696 billion. The company reported Q1 2025 earnings of $0.69 per share, surpassing expectations of a $0.17 loss, with revenue of $290 million. Recent ABS deals, including a $600 million personal loan securitization and a $300 million AAA-rated auto ABS, highlight Pagaya’s funding strength, with over $5.5 billion in capital commitments raised in 2025.
Pagaya’s AI-driven network integrates with over 120 institutional investors, enabling capital-efficient loan originations. “The continued expansion of our funding program demonstrates Pagaya’s ability to consistently deliver attractive assets to investors,” said Sanjiv Das, President and Co-Founder. The Castlelake agreement supports Pagaya’s self-funded growth plan, avoiding equity capital raises while diversifying funding sources. This follows a $2.4 billion forward flow deal with Blue Owl Capital in February 2025, reinforcing Pagaya’s robust financial strategy.
Pagaya’s expanded partnership with Castlelake positions it to scale its personal loan program, leveraging AI to meet growing consumer credit demand. With strong financial performance and strategic funding, Pagaya is solidifying its role as a leader in the fintech ecosystem, driving value for investors and lending partners.
Pagaya is a global technology company making life-changing financial products and services available to more people nationwide, as it reshapes the financial services ecosystem. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides consumer credit and other products for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy.
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