Sunday, December 22, 2024

Pagaya set to acquire Silicon Valley’s Theorem Technology for an undisclosed sum

Here are the key points regarding Pagaya Technologies’ acquisition of Theorem Technology:

  1. Acquisition Overview:
    • US-Israeli fintech Pagaya Technologies has agreed to acquire Theorem Technology, a Silicon Valley-based institutional asset manager specializing in machine learning for an undisclosed amount.
    • The deal is expected to close in Q4 2024.
  2. Business Integration:
    • Theorem’s institutional fund management, consumer credit funds, and engineering capabilities will merge with Pagaya’s AI-powered consumer credit and residential real estate solutions.
  3. Growth and Expansion:
    • Pagaya anticipates that its fund management business will grow to over $3 billion in investment vehicles, separate from its existing securitization program.
    • This acquisition aligns with Pagaya’s strategy to diversify its funding sources and enhance capital efficiency.
  4. Theorem Technology’s Expertise:
    • Founded in 2014, Theorem specializes in post-trade data management for consumer credit and utilizes machine learning to analyze and price loans.
    • The firm manages over $1.7 billion for global institutional investors, including endowments, sovereign wealth funds, pensions, and insurance companies.
  5. Strategic Benefits:
    • The acquisition will provide Theorem with access to Pagaya’s extensive investment sourcing network, while Pagaya will benefit from Theorem’s machine learning investment technology.
    • Investors in Theorem’s credit funds will gain access to credit assets from Pagaya’s network of top US lenders, with over $180 billion in application volume per quarter.
  6. Recent Pagaya Developments:
    • The acquisition follows Pagaya securing a $280 million credit facility led by BlackRock earlier this year.

Hot this week

Banking as a Service: Meaning, Examples, Benefits and Future

The push for open banking has led to a...

Best fintech blogs and websites

Fintech (financial technology) has been an interesting part of...

What is Fintech?

Fintech: A term used to refer to innovations in...

How to buy shares online

Buying shares online in India has come a long...

Is it worth investing in life insurance over 60?

Is it worth investing in life insurance over 60? As...

TBC Bank Uzbekistan Raises $37 Million in Equity Investment

Subheading TBC Bank Uzbekistan secures $37 million from TBC Group,...

XTransfer and OCBC Form Comprehensive Partnership

Subheading XTransfer and OCBC collaborate to provide innovative cross-border financial...

Brazil Greenlights PayRetailers’ Acquisition of Transfeera

Subheading PayRetailers expands its presence in Brazil by acquiring Transfeera,...

Delio Appoints Felicia Meyerowitz-Singh as New Chair

Subheading Felicia Meyerowitz-Singh brings extensive financial services experience to drive...

Işbank Expands Partnership with Alipay+, Enhancing Cross-Border Payments

Subheading Işbank, Turkey's largest private bank, partners with Alipay+ to...

Former UBS Investment Analyst Unveils Voice-Cloned AI Education Tool

Subheading Geoff Robinson's new app uses his digitally cloned voice...

New Zealand Reduces Merchant Service Fees for Card Payments to Benefit Businesses

Subheading The Commerce Commission's draft decision aims to lower Visa...

Adyen and Affirm Extend Partnership to Canada, Enhancing Payment Options

Subheading Adyen and Affirm expand their collaboration to bring flexible...

Related Articles

Popular Categories

spot_imgspot_img